Economic growth does not reduce unemployment equally across Indonesia: it helps a lot in some districts and barely at all in others. Because growth in one district also affects jobs in its neighbors, job policies work best when they fit local conditions and are coordinated across nearby regions.
Around Jakarta, many people live in one district and work in another, and each district sets its own minimum wage. We find that workers are more likely to commute to a neighboring district when its minimum wage is higher, so wage rules drawn along district borders shape where people travel to work.
We analyze the space-time dynamics of Indonesia’s provincial unemployment by simultaneously accounting for their serial persistence, spatial dependence, and common factors.
This paper investigates the regional Okun’s law across 514 districts of Indonesia over the 2011–2020 period. To handle the endogeneity issue, we apply a two-stage least squares (2SLS) model and use regional temperature as instrument for economic …
Using a novel dataset, we analysis the spatio-temporal dynamics of income per capita across 34 provinces and 514 districts in Indonesia over the 2010–2017 period.
By applying a non-linear dynamic factor model, this article tests the club convergence hypothesis using a novel dataset of income at the district level. The results show significant five convergence clubs.
Except for aggregate efficiency, we reject the hypothesis that all provinces would eventually converge to a common steady-state path in terms of labor productivity, physical capital, and human capital. Low efficiency is still a problem for Indonesia