SECTORAL GROWTH AND JOB CREATION: EVIDENCE FROM INDONESIA
Article first published online: 3 JAN 2011
Copyright © 2011 John Wiley & Sons, Ltd.
Journal of International Development
Volume 25, Issue 4, pages 549–561, May 2013
How to Cite
Suryadarma, D., Suryahadi, A. and Sumarto, S. (2013), SECTORAL GROWTH AND JOB CREATION: EVIDENCE FROM INDONESIA. J. Int. Dev., 25: 549–561. doi: 10.1002/jid.1763
- Issue published online: 17 APR 2013
- Article first published online: 3 JAN 2011
- economic growth;
We develop a growth-employment model that decomposes the Indonesian economy into six components, based on a combination of economic sectors and location, and ascertain the sectors that created the most jobs in Indonesia over the past two decades. We find that urban employment is mostly driven by higher growth in the services sector, especially areas that require skilled personnel. Meanwhile, the agriculture sector growth still drives employment in rural areas, although it appears that the services sector also creates a significant number of jobs. Based on these findings, we provide some policy recommendations. Copyright © 2011 John Wiley & Sons, Ltd.