Arbeitspapier

Technological Change, Skill Demand, and Wage Inequality in Indonesia

This paper examines the empirical implications of technological changes for skill demand and wage inequality in Indonesia. According to the National Labor Force Survey of Indonesia, the share of educated workers and wage skill premium increased significantly over 2003–2009 for overall industry and across the region. An analysis based on demand–supply framework suggests that demand shifts favoring skilled workers during the period. The decomposition of labor demand shifts shows that they were driven not only by reallocation of labor forces between industries but also by change within industries, particularly among formal workers, suggesting evidence of skill-biased technological changes. The empirical evidence from the data of manufacturing firms suggest that diffusion of new technologies through imported materials and foreign direct investment caused greater demand for skilled labor and higher wage inequality in the manufacturing sector.

Sprache
Englisch

Erschienen in
Series: ADB Economics Working Paper Series ; No. 340

Klassifikation
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Technological Change: Choices and Consequences; Diffusion Processes
Thema
skill-biased technological change
human capital
wage inequality
Technischer Fortschritt
Humankapital
Lohnstruktur
Qualifikation
Arbeitsnachfrage
Indonesien

Ereignis
Geistige Schöpfung
(wer)
Lee , Jong-Wha
Wie, Dainn
Ereignis
Veröffentlichung
(wer)
Asian Development Bank (ADB)
(wo)
Manila
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lee , Jong-Wha
  • Wie, Dainn
  • Asian Development Bank (ADB)

Entstanden

  • 2013

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