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Inequality and structural transformation in the changing nature of work: The case of Indonesia

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  • Arief Anshory Yusuf
  • Putri Riswani Halim

Abstract

This paper analyses the labour market dynamics in Indonesia from 2001 to 2015 and explores the role of the changing nature of occupational employment in explaining the rising earnings inequality during the same period. First, we find evidence of a disproportionate increase in the returns to tertiary education, the increasing shares of highly skilled and elementary workers, and a sign of job polarization. Second, we find evidence of job polarization in the periods 2005-10 and 2005-15.

Suggested Citation

  • Arief Anshory Yusuf & Putri Riswani Halim, 2021. "Inequality and structural transformation in the changing nature of work: The case of Indonesia," WIDER Working Paper Series wp-2021-81, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-81
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    References listed on IDEAS

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    5. Arief Anshory Yusuf & Reza Anglingkusumo & Andy Sumner, 2021. "A direct test of Kuznets in a developing economy: a cross-district analysis of structural transformation and inequality in Indonesia," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 8(1), pages 184-206, January.
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    Cited by:

    1. Maria Monica Wihardja & Abror Tegar Pradana, 2024. "Examining the drivers of changes in mean earnings and earnings inequality in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 38(2), pages 232-255, June.
    2. Arief A. Yusuf & Reza Anglingkusumo & Andy Sumner & Putri R. Halim & Anggita C.M. Kusuma, 2020. "Routinization And The Changing Task Composition In The Labor Market: Evidence From Indonesia," Working Papers WP/06/2020, Bank Indonesia.
    3. Bennett, Fidel & Escudero, Verónica & Liepmann, Hannah & Podjanin, Ana, 2022. "Using Online Vacancy and Job Applicants' Data to Study Skills Dynamics," VfS Annual Conference 2022 (Basel): Big Data in Economics 264023, Verein für Socialpolitik / German Economic Association.

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    Keywords

    Labour market dynamics; Inequality; Occupations; Employment; Earnings inequality;
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