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SECTORAL GROWTH AND JOB CREATION: EVIDENCE FROM INDONESIA
Author(s) -
Suryadarma Daniel,
Suryahadi Asep,
Sumarto Sudarno
Publication year - 2013
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1763
Subject(s) - indonesian , agriculture , job creation , business , labour economics , tertiary sector of the economy , primary sector of the economy , economic sector , economics , economic growth , economy , geography , marketing , linguistics , archaeology , philosophy
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.