Indonesia, Wages and Employment
Author: Constantino Lluch
Publisher:
Published: 1985
Total Pages: 238
ISBN-13:
DOWNLOAD EBOOKAs part of a continuing effort to assess wage and employment conditions in Indonesia, this report focuses on labour market conditions. The population has grown at a faster than expected rate which means that the labour force will grow faster than expected as well. In addition, output growth over the eighties is not expected to be as fast as in the past. The implications for employment and labour incomes of these factors vary according to alternative workings of the labour markets. Therefore, alternative views on how labour markets work have important and different implications for policy. A primary objective of this report is to point out these implications and to promote further study of labour markets in Indonesia. It differs from the previous view, suggesting that quality of labour does not explain wage differentials, that the problem of underutilization of young people is too great to be explained by models highlighting transitional job searching, and that social forces and economic forces which do not lead to the clearing of the labour market play a large role in the determination of wages. These factors have important consequences for policy, including the need to consider employment creation as a separate objective.
