Import competition and local labor markets: the case of Indonesia
This paper analyzes the effects of import competition on Indonesian local labor markets in term of manufacturing employment share, non-manufacturing employment share, unemployment rate, and wages. A rapid increase of globalization has caused many countries including Indonesia experienced a significa...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2018-07-01
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| Series: | Economic Journal of Emerging Markets |
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| Online Access: | http://uiistage.openjournaltheme.com/3310/index.php/JEP/article/view/10243 |
| Summary: | This paper analyzes the effects of import competition on Indonesian local labor markets in term of manufacturing employment share, non-manufacturing employment share, unemployment rate, and wages. A rapid increase of globalization has caused many countries including Indonesia experienced a significant increase in imports, which lead to a tougher import competition. Using data of imports and 430 districts in Indonesia in the period of 2007-2013, we found that import competition has negatively affected manufacturing employment share, non-manufacturing employment share, and wages. It also increased unemployment. In addition, the highest impact was mainly driven by imports of consumption goods |
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| ISSN: | 2086-3128 2502-180X |