IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/1728.html
   My bibliography  Save this paper

Regional labor markets during deregulation in Indonesia : have the Outer Islands been left behind?

Author

Listed:
  • MANNING, CHRIS J.

Abstract

Indonesia's labor markets, especially on the island of Java, have been transformed in the past 30 years, especially since liberalization picked up speed in the mid-1980's. The author explores the regional dimensions of that transformation. In some other countries, when labor markets changed, disparities among regions occurred. In Indonesia, when the employment structure changed markedly, real wages rose not only in Java-Bali, but also in most Outer Island provinces. Wages have grown more rapidly in Java-Bali, but labor in the Outer Island provinces has enjoyed large gains, the result of the rapid economic growth that came during deregulation. Among Outer Island provinces, Northern Sumatra and the poorer Eastern Island provinces have experienced substantial growth, while the Kalimantan provinces have lagged in manufacturing employment and wages. Labor market outcomes have also been less favorable in land-abundant provinces that received many assisted migrants during Indonesia's earlier oil boom. The author concludes that export-led industrialization concentrated in Java-Bali has helped change the labor market and income growth outside Java-Bali also. Improved wages and the shift of labor out of agriculture also partly reflect the government's continuing support for infrastructure and human resource development in the Outer Island provinces.

Suggested Citation

  • Manning, Chris J., 1997. "Regional labor markets during deregulation in Indonesia : have the Outer Islands been left behind?," Policy Research Working Paper Series 1728, The World Bank.
    • Handle: RePEc:wbk:wbrwps:1728
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/454091468772481074/pdf/multi-page.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hal Hill, 1997. "Regional development in Southeast Asia: The challenges of subnational diversity," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 2(3), pages 261-302.
    2. Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21.
    3. Hill, Hal, 1983. "Choice of Technique in the Indonesian Weaving Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 31(2), pages 337-353, January.
    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. Cox Edwards, Alejandra, 1996. "Labor regulations and industrial relations in Indonesia," Policy Research Working Paper Series 1640, The World Bank.

    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. Hal Hill, 2002. "Spatial Disparities in Developing East Asia: a survey," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 16(1), pages 10-35, May.
    2. Pedroni, Peter & Yao, James Yudong, 2006. "Regional income divergence in China," Journal of Asian Economics, Elsevier, vol. 17(2), pages 294-315, April.
    3. Sylvie Démurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," Asian Economic Papers, MIT Press, vol. 1(1), pages 146-197.
    4. Christopher Candelaria & Mary C. Daly & Galina Hale, 2009. "Beyond Kuznets: persistent regional inequality in China," Working Paper Series 2009-07, Federal Reserve Bank of San Francisco.
    5. Jing Li & Tsun Se Cheong & Jianfa Shen & Dahai Fu, 2019. "Urbanization And Rural–Urban Consumption Disparity: Evidence From China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 983-996, September.
    6. Kailei Wei & Shujie Yao & Aying Liu, 2007. "Foreign direct investment and regional inequality in China," Discussion Papers 07/32, University of Nottingham, GEP.
    7. Andrés Rodríguez-Pose, 2012. "Trade and Regional Inequality," Economic Geography, Taylor & Francis Journals, vol. 88(2), pages 109-136, April.
    8. Jiansuo Pei & Jan Oosterhaven & Erik Dietzenbacher, 2017. "Foreign exports, net interregional spillovers and Chinese regional supply chains," Papers in Regional Science, Wiley Blackwell, vol. 96(2), pages 281-298, June.
    9. Celine Bonnefond, 2014. "Growth Dynamics And Conditional Convergence Among Chinese Provinces: A Panel Data Investigation Using System Gmm Estimator," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 1-25, December.
    10. Zheng Wang, 2004. "Regional Divergence of per capita GDP in China: 1991-99," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(1), pages 39-53.
    11. Johan Lyhagen & Johanna Rickne, 2014. "Income inequality between Chinese regions: newfound harmony or continued discord?," Empirical Economics, Springer, vol. 47(1), pages 93-110, August.
    12. Aart Kraay, 2000. "Household Saving in China," The World Bank Economic Review, World Bank, vol. 14(3), pages 545-570, September.
    13. Lu Ming & Zhao Chen & Yongqin Wang & Yan Zhang & Yuan Zhang & Changyuan Luo, 2013. "China’s Economic Development," Books, Edward Elgar Publishing, number 14502.
    14. Lemoine, Françoise & Poncet, Sandra & Ünal, Deniz, 2015. "Spatial rebalancing and industrial convergence in China," China Economic Review, Elsevier, vol. 34(C), pages 39-63.
    15. Lili Kang & Fei Peng, 2018. "Economic Reform and Productivity Convergence in China," Arthaniti: Journal of Economic Theory and Practice, , vol. 17(1), pages 50-82, June.
    16. Herrerias, M.J. & Ordoñez, J., 2012. "New evidence on the role of regional clusters and convergence in China (1952–2008)," China Economic Review, Elsevier, vol. 23(4), pages 1120-1133.
    17. Kanbur, Ravi & Zhang, Xiao-Bo, 1998. "Which Regional Inequality? The Evolution of Rural-Urban and Inland-Coastal Inequality in China, 1983-1995," Working Papers 179359, Cornell University, Department of Applied Economics and Management.
    18. Narayan, Paresh Kumar & Nielsen, Ingrid & Smyth, Russell, 2008. "Panel data, cointegration, causality and Wagner's law: Empirical evidence from Chinese provinces," China Economic Review, Elsevier, vol. 19(2), pages 297-307, June.
    19. Coady, David P. & Wang, Limin, 2000. "Equity, efficiency, and labor-market reforms in urban China: the impact of bonus wages on the distribution of earnings," China Economic Review, Elsevier, vol. 11(3), pages 213-231.
    20. Bao, Shuming & Chang, Gene Hsin & Sachs, Jeffrey D. & Woo, Wing Thye, 2002. "Geographic factors and China's regional development under market reforms, 1978-1998," China Economic Review, Elsevier, vol. 13(1), pages 89-111.

    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:wbk:wbrwps:1728. 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.