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Human Resource, Population, and Labor

The impact of Industry 4.0 on the Indonesian economy: A general equilibrium assessment (2021)

Abstract:

Using a recursive-dynamic multiregional computable general equilibrium (CGE) modelling approach, we introduced a set of sector-specific labour productivity shocks representing the effect of Industry 4.0 on the Indonesian economy. The results suggest that Indonesia’s long-term economic growth will increase from 5.2% per year to 5.7% per year. In terms of output expansion, the top gainer would be the machinery and motor vehicles sector, and to a lesser extent, finance, whereas low gainers include extractive and agricultural sectors and food processing industries. Region-wise, Java, the already advanced region, will be the primary beneficiary of the growth, while other islands will not benefit as much. There is not much risk of unfavourable distributional effect. However, agriculture workers will lose out compared with workers in other sectors, particularly those with intermediate skill levels.

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A direct test of Kuznets in a developing economy: a cross-district analysis of structural transformation and inequality in Indonesia (2021)

By Arief Anshory Yusuf, Reza Anglingkusumo & Andy Summer

Abstract:

This paper empirically tests the Kuznets hypothesis that structural transformation – the movement of labour from low productivity to higher productivity sectors – is associated with rising inequality in a developing economy. We assemble a unique data set of inequality and sectoral employment shares of almost 300 districts of Indonesia and sector-specific measures of inequality for the period 1992–2017. Unlike studies that use value added shares to test the Kuznets hypothesis, this paper is among a few that directly test it with sectoral employment shares. We find that structural change and rising inequality coevolve in different ways depending on the modality of structural transformation. Specifically, we find in the Indonesian case that structural transformation has a tendency to be associated with falling inequality during a period of industrialization and increasing inequality during a period of tertiarization.

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Improving Educational Quality through Enhancing Community Participation: Results from a Randomized Field Experiment in Indonesia (2014)

By Menno Pradhan, Daniel Suryadarma, Amanda Beatty, Maisy Wong, Arya Gaduh, Armida S. Alisjahbana & Rima Prama Artha

Abstract:

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