IDEAS home Printed from https://ideas.repec.org/p/agg/wpaper/361.html
   My bibliography  Save this paper

The Measurement and Trends of Unemployment in Indonesia: The Issue of Discouraged Workers

Author

Listed:
  • Daniel Suryadarma
  • Asep Suryahadi
  • Sudarno Sumarto

Abstract

This study provides an overview of the concepts used to measure unemployment in Indonesia and their consequences for the measured unemployment trends. One finding shows that BPSs decision in 2001 to relax the definition of labor force by including discouraged workers has resulted in an artificially high open unemployment rate and disguises the actual decline in traditionally-measured open unemployment rates post-crisis. Another finding indicates that discouraged workers in Indonesia are not confined only to the poor and those who are denied access to the proper job market. We recommend that, if Indonesia still wants to utilize a broader definition of the labor force, the measurement of open unemployment should adhere to the ILOs recommendation of only including those discouraged workers who are still willing to work. The discouraged workers who are unwilling to work should be left in the out of labor force category.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Daniel Suryadarma & Asep Suryahadi & Sudarno Sumarto, "undated". "The Measurement and Trends of Unemployment in Indonesia: The Issue of Discouraged Workers," Working Papers 361, Publications Department.
    • Handle: RePEc:agg:wpaper:361
    as

    Download full text from publisher

    File URL: https://smeru.or.id/sites/default/files/publication/measuretrendunemploy.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stefano DellaVigna & M. Daniele Paserman, 2005. "Job Search and Impatience," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 527-588, July.
    2. Asep Suryahadi & Paul Chen & Rod Tyers, . "Openness, Technological Change and Labor Demand in Pre-Crisis Indonesia," Journal Article, Publications Department.
    3. James A. Levinsohn & Steven T. Berry & Jed Friedman, 2003. "Impacts of the Indonesian Economic Crisis.Price Changes and the Poor," NBER Chapters, in: Managing Currency Crises in Emerging Markets, pages 393-428, National Bureau of Economic Research, Inc.
    4. Asep Suryahadi & Sudarno Sumarto, . "Poverty and Vulnerability in Indonesia Before and After the Economic Crisis," Journal Article, Publications Department.
    5. Chris Manning & P. N. Junankar, 1998. "Choosy Youth or Unwanted Youth? A Survey of Unemployment," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(1), pages 55-93.
    6. Chris Manning, 2000. "Labour Market Adjustment to Indonesia's Economic Crisis: Context, Trends and Implications," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(1), pages 105-136.
    7. Asep Suryahadi & Sudarno Sumarto, 2003. "Poverty and Vulnerability in Indonesia Before and After the Economic Crisis," Asian Economic Journal, East Asian Economic Association, vol. 17(1), pages 45-64, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Avdullah Hoti, 2017. "Participation, Discouraged Workers and Job Search: Evidence for Kosova," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 3(3), pages 239-262, July.
    2. Todor Todorov, 2012. "Hidden Unemployment in Bulgaria – Discouraged Worker Effect and Involuntary Underemployment," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 171-199.
    3. Armida Alisjahbana & Chris Manning, 2006. "Labour market dimensions of poverty in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 235-261.
    4. Matsumoto, Makiko. & Verick, Sher., 2011. "Employment trends in Indonesia over 1996-2009 : casualization of the labour market during an era of crises, reforms and recovery," ILO Working Papers 994662523402676, International Labour Organization.
    5. Palmer, Susannah. & Noriel, Carmelo C., 2008. "Freedom of association and collective bargaining : Indonesian experience 2003-2008," ILO Working Papers 994278313402676, International Labour Organization.
    6. repec:ilo:ilowps:466252 is not listed on IDEAS
    7. repec:ilo:ilowps:427831 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asep Suryahadi & Sudarno Sumarto & Daniel Suryadarma, "undated". "Pengukuran dan Tren Pengangguran di Indonesia: Masalah Pekerja Patah Semangat," Working Papers 3467, Publications Department.
    2. Bhattacharyya, Sambit & Resosudarmo, Budy P., 2015. "Growth, Growth Accelerations, and the Poor: Lessons from Indonesia," World Development, Elsevier, vol. 66(C), pages 154-165.

    More about this item

    Keywords

    discouraged workers; open unemployment; measurement; Indonesia;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agg:wpaper:361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ratri Indah Septiana (email available below). General contact details of provider: https://edirc.repec.org/data/smeruid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.