How Technology Adoption and Trade Are Shaping Indonesian Labor Markets
This paper analyzes the simultaneous impacts and interplay of exports and technology adoption on the demand for different types of skills and aggregate labor market indicators in Indonesia over a period characterized by a commodity boom (2005-10) a...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/428001576773880472/How-Technology-Adoption-and-Trade-Are-Shaping-Indonesian-Labor-Markets http://hdl.handle.net/10986/33103 |
| Summary: | This paper analyzes the simultaneous
impacts and interplay of exports and technology adoption on
the demand for different types of skills and aggregate labor
market indicators in Indonesia over a period characterized
by a commodity boom (2005-10) and a period of declining
exports (2011-15). The results for the 2005-10 sub-period
are in line with the evidence available for developed
countries, that is, technology is complementary to
analytical and soft skills and is labor-saving, while
exports are labor increasing. In 2011-15, the relationship
between technology and skills, and between technology and
labor demand, differs from the evidence available for the
developed world. That is, technology increases the demand
for analytical and interpersonal skills in high-exporting
industries only, and technology and exports are labor
increasing for some population subgroups. The findings for
the more recent period confirm that differences in economic
structures matter for understanding the impacts of
technological advances and globalization. |
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