Regional Skill Differentials

A Study of the Indonesian Labor Market

Tri MULYANINGSIH, Riyana MIRANTI, Anne DALY, Chris Manning

Research output: Contribution to journalArticle

Abstract

This study investigates the patterns and trends in the returns to skill in the Indonesian labor market over the period 2007 to 2013, a period of rising earnings and income inequality. The study takes into account the labor demand and supply across regional development regions and over time. It presents evidence on the returns to skill related to structural changes in the economy through the growth of modern services and the resource boom. It confirms that skill premiums varied across regional development areas. The composition of industries across regions, female labor participation, the proportion of casual workers, the supply of tertiary-educated workers and factors unique to each region are all determinants of the regional skill premiums. The results support the policy focus on developing human capital in Indonesia to meet the rising demand for skilled workers and show the role of the manufacturing sector and minimum wages policy in reducing the skill premium.

Original languageEnglish
Pages (from-to)1-22
Number of pages22
JournalSingapore Economic Review
DOIs
Publication statusE-pub ahead of print - 2019

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premium
labor market
regional development
wage policy
development area
worker
labor demand
minimum wage
skilled worker
labor supply
manufacturing sector
structural change
human capital
Indonesia
determinants
supply
labor
income
participation
economy

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MULYANINGSIH, Tri ; MIRANTI, Riyana ; DALY, Anne ; Manning, Chris. / Regional Skill Differentials : A Study of the Indonesian Labor Market. In: Singapore Economic Review. 2019 ; pp. 1-22.
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Regional Skill Differentials : A Study of the Indonesian Labor Market. / MULYANINGSIH, Tri; MIRANTI, Riyana; DALY, Anne; Manning, Chris.

In: Singapore Economic Review, 2019, p. 1-22.

Research output: Contribution to journalArticle

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