Structural Transformation and the Release of Labor from Agriculture

Policy Research

This chapter’s contribution is the first effort to reveal the pattern of employment transformation using a long-term longitudinal survey, the Indonesia Family Life Survey (IFLS).1 Utilizing this dataset, we have generated matrixes of employment transformation for a 17-year period. The chapter also looks at both micro-level variables (e.g., individual or household characteristics) and macro-level variables (government policies, labor market indicators, etc.) that may influence people who move out to other employment sectors as well as those who stay in their original sectors. The rest of the chapter is structured as follows. Section 2 discusses Indonesian structural transformation and its theoretical framework. Section 3 describes the data and methods used in the analysis. Section 4 discusses the pattern of structural transformation in employment that has taken place in Indonesia. Section 5 concludes and offers some policy recommendations based on the insights that emerge from the results. 

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Asep Suryahadi
Joseph Natanael Marshan
Veto Tyas Indrio
Research Area 
Structural transformation
release of labor
Publication Type 
Book and Book Chapter
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