Publication
May 2001
This paper develops a general equilibrium model to examine Indonesia’s trade regime and its labor markets. The author finds that the dominant factor in affecting wage inequality is total factor productivity growth rather than capital accumulation. The author examines protective policy measures to reduce growth-induced wage inequality. He concludes that raising elasticity of skilled labor supply through education, training and migration is best to address the inevitable wage inequality increase during economic recovery from the Asian financial crisis.
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English (PDF, 43 pages, 1.0 MB) |
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Author | Asep Suryahadi |
Series | East-West Center Working Papers |
Publisher | East-West Center (EWC) |
Copyright | © 2001 East-West Center (EWC) |