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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| Language: | English |
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World Bank, Washington, DC
2021
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| 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 |
| Summary: | 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. |
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