Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs?

By some measures, the Indonesian labor market has never looked better. Underpinned by sound macroeconomic policies, steady economic growth of about 5 percent per annum over the past decade was associated with strong job creation. This article focus...

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Main Authors: Yoong, Pui Shen, Gil Sander, Frederico
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/973571625050333469/Indonesia-Jobs-Action-Program-Structural-Transformation-and-Labor-Productivity-in-Indonesia-Where-are-All-the-Good-Jobs
http://hdl.handle.net/10986/35951
id okr-10986-35951
recordtype oai_dc
spelling okr-10986-359512021-07-20T05:10:54Z Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs? Yoong, Pui Shen Gil Sander, Frederico STRUCTURAL TRANSFORMATION LABOR MARKET JOBS DIAGNOSTIC LABOR PRODUCTIVITY TERTIARY EDUCATION LABOR SKILLS DEVELOPMENT By some measures, the Indonesian labor market has never looked better. Underpinned by sound macroeconomic policies, steady economic growth of about 5 percent per annum over the past decade was associated with strong job creation. This article focuses on one driver of the quality of jobs in Indonesia: labor productivity growth and, in particular, the (limited) contribution of structural transformation. It shows how structural change - here defined as the reallocation of workers from low- to high-productivity economic activities - has contributed only a small share of labor productivity growth in the recent two decades. The main takeaway is that Indonesia need not worry as much about the quantity of jobs as the quality of those jobs. Both demand-side and supply-side interventions are needed to boost labor productivity so that more Indonesians can have middle-class jobs. 2021-07-19T15:52:30Z 2021-07-19T15:52:30Z 2020-02-14 Working Paper http://documents.worldbank.org/curated/en/973571625050333469/Indonesia-Jobs-Action-Program-Structural-Transformation-and-Labor-Productivity-in-Indonesia-Where-are-All-the-Good-Jobs http://hdl.handle.net/10986/35951 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research East Asia and Pacific Indonesia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic STRUCTURAL TRANSFORMATION
LABOR MARKET
JOBS DIAGNOSTIC
LABOR PRODUCTIVITY
TERTIARY EDUCATION
LABOR SKILLS DEVELOPMENT
spellingShingle STRUCTURAL TRANSFORMATION
LABOR MARKET
JOBS DIAGNOSTIC
LABOR PRODUCTIVITY
TERTIARY EDUCATION
LABOR SKILLS DEVELOPMENT
Yoong, Pui Shen
Gil Sander, Frederico
Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs?
geographic_facet East Asia and Pacific
Indonesia
description By some measures, the Indonesian labor market has never looked better. Underpinned by sound macroeconomic policies, steady economic growth of about 5 percent per annum over the past decade was associated with strong job creation. This article focuses on one driver of the quality of jobs in Indonesia: labor productivity growth and, in particular, the (limited) contribution of structural transformation. It shows how structural change - here defined as the reallocation of workers from low- to high-productivity economic activities - has contributed only a small share of labor productivity growth in the recent two decades. The main takeaway is that Indonesia need not worry as much about the quantity of jobs as the quality of those jobs. Both demand-side and supply-side interventions are needed to boost labor productivity so that more Indonesians can have middle-class jobs.
format Working Paper
author Yoong, Pui Shen
Gil Sander, Frederico
author_facet Yoong, Pui Shen
Gil Sander, Frederico
author_sort Yoong, Pui Shen
title Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs?
title_short Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs?
title_full Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs?
title_fullStr Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs?
title_full_unstemmed Structural Transformation and Labor Productivity in Indonesia : Where are All the Good Jobs?
title_sort structural transformation and labor productivity in indonesia : where are all the good jobs?
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/973571625050333469/Indonesia-Jobs-Action-Program-Structural-Transformation-and-Labor-Productivity-in-Indonesia-Where-are-All-the-Good-Jobs
http://hdl.handle.net/10986/35951
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