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Wages, employment and economic shocks: Evidence from Indonesia


After over a quarter century of sustained economic growth, Indonesia was struck by a large and unanticipated crisis at the end of the 20th Century. Real GDP declined by about 12% in 1998. Using 13 years of annual labor force data in conjunction with two waves of a household panel, the Indonesia Family Life Survey (IFLS), this paper examines the impact of the crisis on labor market outcomes.

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Received: 31 December 1999/Accepted: 3 August 2000

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Smith, J., Thomas, D., Frankenberg, E. et al. Wages, employment and economic shocks: Evidence from Indonesia. J Popul Econ 15, 161–193 (2002).

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  • JEL classification: J2, J3, O1
  • Key words: Labor markets, economic crisis, Indonesia