Labour Productivity Growth in the Industrial Sector of Indonesia: Structural Bonus or Structural Burden?

  • Lilis Siti Badriah Jenderal Soedirman University
  • Armida S. Alisjahbana Padjadjaran University
  • Kodrat Wibowo Padjadjaran University
  • Ferry Hadiyanto Padjadjaran University

Abstract

The economic structural change on the output side is accompanied by the reallocation of labour from the agricultural sector to the industrial sector. Some studies show the different effects of labour reallocation on labour productivity growth. This study analyses labour productivity growth in the manufacturing sector in relation to economic structural changes in Indonesia. The analytical methods used are shiftshare and panel data regression models using secondary data of 30 provinces from 2003-2014. The results show economic structural change through labour reallocation decreases growth of labour productivity (structural burden) although productivity continues to grow.

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Published
2019-06-10
How to Cite
BADRIAH, Lilis Siti et al. Labour Productivity Growth in the Industrial Sector of Indonesia: Structural Bonus or Structural Burden?. Malaysian Journal of Economic Studies, [S.l.], v. 56, n. 1, p. 139-159, june 2019. ISSN 1511-4554. Available at: <https://mjes.um.edu.my/article/view/18331>. Date accessed: 07 dec. 2019. doi: https://doi.org/10.22452/MJES.vol56no1.7.
Section
Articles