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Forecasting Employment Growth in Indonesia

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  • David Lim

Abstract

This note discusses the dangers of using the employment-output elasticity to forecast employment creation in Indonesia. It demonstrates the unreliability of employment-output elasticity estimates for Indonesia obtained using various methods, and argues, that, in addition to the estimation problems, the elasticity method has inherent weaknesses that should preclude its use to forecast employment growth in a dynamic world.

Suggested Citation

  • David Lim, 1997. "Forecasting Employment Growth in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 33(3), pages 111-119.
    • Handle: RePEc:taf:bindes:v:33:y:1997:i:3:p:111-119
    DOI: 10.1080/00074919712331337255
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    References listed on IDEAS

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    1. Marc Nerlove, 1956. "Estimates of the Elasticities of Supply of Selected Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 496-509.
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    Cited by:

    1. Margherita Comola & Luiz de Mello, 2010. "Educational attainment and selection into the labour market: The determinants of employment and earnings in Indonesia," Working Papers halshs-00564835, HAL.
    2. Mohammad Zulfan Tadjoeddin, 2016. "Earnings, productivity and inequality in Indonesia," The Economic and Labour Relations Review, , vol. 27(2), pages 248-271, June.

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