Structural Change and Labor Productivity Growth in Indonesia

Lilis Siti Badriah, Armida S. Alisjahbana, Kodrat Wibowo, Ferry Hadiyanto

Abstract

Structural changes indicate reallocation of inputs from less productive sectors to more productive sectors. Some literature indicate that the impact of structural change could become a structural bonus for productivity growth. However, the others indicate that structural changes could become a structural burden. This study aims to examine the impact of structural changes on labor productivity growth in Indonesia and the determinants of that growth. The methods used are shift-share analysis and panel data regression. The data consist of total output and sectorial labors as well as other macro data from 30 provinces of Indonesia during 2003-2014. The combination of both methods show a corresponding result that structural changes have a weak impact on labor productivity growth in Indonesia. This result implies the need for support of more relevant government policies by improving the quality of human resources, investment, infrastructure, and maintaining macroeconomic stability to get more benefits from structural changes.

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Paper Citation


in Harvard Style

Siti Badriah L., S. Alisjahbana A., Wibowo K. and Hadiyanto F. (2017). Structural Change and Labor Productivity Growth in Indonesia.In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE, ISBN 978-989-758-308-7, pages 397-402. DOI: 10.5220/0006886903970402


in Bibtex Style

@conference{iceee17,
author={Lilis Siti Badriah and Armida S. Alisjahbana and Kodrat Wibowo and Ferry Hadiyanto},
title={Structural Change and Labor Productivity Growth in Indonesia},
booktitle={Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE,},
year={2017},
pages={397-402},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006886903970402},
isbn={978-989-758-308-7},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE,
TI - Structural Change and Labor Productivity Growth in Indonesia
SN - 978-989-758-308-7
AU - Siti Badriah L.
AU - S. Alisjahbana A.
AU - Wibowo K.
AU - Hadiyanto F.
PY - 2017
SP - 397
EP - 402
DO - 10.5220/0006886903970402