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Submitted
March 16, 2018
Accepted
June 21, 2018
Published
July 2, 2018
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Abstract

This paper analyzes the effects of import competition on Indonesian local labor markets in term of manufacturing employment share, non-manufacturing employment share, unemployment rate, and wages. A rapid increase of globalization has caused many countries including Indonesia experienced a significant increase in imports, which lead to a tougher import competition. Using data of imports and 430 districts in Indonesia in the period of 2007-2013, we found that import competition has negatively affected manufacturing employment share, non-manufacturing employment share, and wages. It also increased unemployment. In addition, the highest impact was mainly driven by imports of consumption goods

Keywords

import competition local labor market Indonesia

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Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Agustina, F. S. (2018). Import competition and local labor markets: the case of Indonesia. Economic Journal of Emerging Markets, 10(2), 177–186. https://doi.org/10.20885/ejem.vol10.iss2.art6
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