The Indonesian Labour Market: Changes and challenges, 1st Edition (Paperback) book cover

The Indonesian Labour Market

Changes and challenges, 1st Edition

By Shafiq Dhanani, Iyanatul Islam, Anis Chowdhury

Routledge

248 pages | 38 B/W Illus.

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Description

The topics of unemployment, underemployment, wage trends and patterns, and the relationship between poverty and the labour market are of interest to all policy makers, researchers, academics and journalists concerned with economic development. This book traces the evolution of the Indonesian labour market between the early 1970s and late 2000s. This entails a (a) review of macroeconomic policies and their employment impact; (b) review of unemployment and underemployment trends; (c) review of wage trends and living standards; (d) relationship between poverty, inequality and the labour market; and (e) labour market regulations, employment and the business environment.

The book comes up with a number of policy-relevant findings. Macroeconomic policies, particularly inflation targeting in the 2000-2007 period, have not been conducive to employment generation. The assumption that unemployment is an appropriate indicator of labour market performance and, more importantly, that it is closely aligned with poverty, is shown to be inaccurate. Sustained real wage growth in the twenty-year period before the 1997 financial crisis is contrasted with the lack of improvement since then, a period otherwise of respectable economic growth by international standards. The predicted adverse consequences of sweeping labour market regulations in 2000-2007 on properly measured employment, unemployment and labour costs did not materialize, mainly because of low compliance. It seems that a restrictive macroeconomic framework has been more constraining for employment growth than the perceived labour market rigidity during the post-crisis period. The book concludes with an evaluation of several ‘reactive’ and ‘proactive’ labour market policies. Though these are complementary, policy makers in Indonesia have probably put too much emphasis on reactive policies such minimum wage and severance pay, and not enough on proactive policies aimed at creating an adaptable and skilled workforce.

Table of Contents

1. Introduction 2. Growth, Employment and Macroeconomic Policies 3. Unemployment and Underemployment 4. Real Wages and Labour Productivity 5. Poverty, Inequality and the Labour Market 6. Labour Market Regulations and the Business Environment 7. Conclusion and a Policy Agenda

About the Authors

Dr. Shafiq Dhanani is currently the Executive Director of a policy consultancy company near Jakarta, Indonesia. Iyanatul Islam is Professor of International Business at Griffith University, Australia. He is also a Senior Employment Policy Specialist at ILO, Geneva. Anis Chowdhury is Professor of Economics at the University of Western Sydney, Australia and Senior Economic Affairs Officer at the United Nations, New York.

About the Series

Routledge Studies in the Modern World Economy

In an increasingly interdependent world, many of the most important issues are driven by economic forces. This series applies newly developed economic techniques to some of the most pressing contemporary problems. The aim of the series is to demonstrate the relevance of modern economic theory to the modern world economy, and to provide key reading for researchers and policy-makers.

Learn more…

Subject Categories

BISAC Subject Codes/Headings:
BUS000000
BUSINESS & ECONOMICS / General
BUS038000
BUSINESS & ECONOMICS / Labor
HIS003000
HISTORY / Asia / General