Skip to main content
SpringerLink
Log in

Labour Market Regulations and the Welfare of Indonesian Workers

  • Chapter
Regulating for Decent Work

Part of the book series: Advances in Labour Studies ((AILS))

Abstract

There is a remarkable — and largely unremarked — asymmetry in the way economists treat the benefits of regulations that seek to protect private property rights and regulations that seek to protect labour rights and standards. The former are seen as essential for growth; the latter are treated as a hindrance. The intellectual imprint of this idea is reflected in both the global and the Indonesian context. It is necessary to understand the Indonesian variant of the global discourse on labour market regulations in order to develop a fuller appreciation of the current and prospective policy agenda on the labour market. This provides the rationale for the current chapter.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Aaron, C.; Kenward, L.; Bird, K.; Desai, M.; Aswicahyono, H.; Basri, C.M.; Tubagus, C. 2004. ‘Strategic approaches to job creation and employment in Indonesia’. Report prepared for USAID (Jakarta: USAID).

    Google Scholar 

  • Abbas, S.K.; Zaman, A. 2005. ‘Efficiency wage hypothesis: the case of Pakistan’, The Pakistan Development Review, vol. 44, no. 4, pp. 1051–66.

    Google Scholar 

  • Aggrawal, N. 1995. ‘Indonesia: labor market policies and international competitiveness’, World Bank Policy Research Working Paper No. 1515 (Washington, DC: World Bank).

    Google Scholar 

  • Akerlof, G.A.; Yellen, J.L. 1986. Efficiency Wage Models of the Labour Market (Cambridge: Cambridge University Press).

    Book  Google Scholar 

  • Alatas, V.; Cameron, L. 2003. ‘The impact of minimum wages on employment in a low-income country: an evaluation using the difference-in-difference approach’, World Bank Policy Research Working Paper No. 2985 (Washington, DC: World Bank).

    Google Scholar 

  • Asian Development Bank (ADB). 2005. Asian Development Outlook (Manila: ADB).

    Google Scholar 

  • Basu, A.K.; Chau, N.H.; Kanbur, R. 2007. ‘Turning a blind eye: costly enforcement, credible commitment and minimum wage laws’, IZA Discussion Paper No. 2998 (Bonn: Institute for the Study of Labour (IZA)).

    Google Scholar 

  • Berg, J.; Kucera, D. (eds) 2008. In Defence of Labour Market Institutions: Cultivating Justice in the Developing World (London and Geneva: Palgrave and ILO).

    Google Scholar 

  • Bird, K.; Manning, C. 2005. ‘Minimum wages and poverty in a developing country: simulations from Indonesia’s household survey’. Departmental Working Paper (Canberra: Research School of Pacific and Asian Studies, Australian National University).

    Google Scholar 

  • Brown, D.K.; Deardorff, A.V.; Stern, R.M. 2002. ‘The effects of multinational production on wages and working conditions in developing countries’, RSIE Discussion Paper no. 483. Presented at NBER/CEPR/SNS Conference, International Seminar on International Trade (ISIT), ‘Challenges to Globalization’, Höberge Gård, Stockholm, 24–5 May.

    Google Scholar 

  • Chatani, K. 2009. ‘Labour market regulations and investment’, Policy Note, October (Jakarta: ILO).

    Google Scholar 

  • Dhanani, S.; Islam, I. 2001a. ‘Labour market adjustments to Indonesia’s economic crisis: a comment’, Bulletin of Indonesian Economic Studies, vol. 37, no. 1, pp. 1211–31.

    Article  Google Scholar 

  • Dhanani, S.; Islam, I. 2001b. ‘Poverty and vulnerability in a period of crisis: the case of Indonesia’, World Development, vol. 3, no. 7, pp. 1211–31.

    Google Scholar 

  • Dhanani, S.; Islam, I.; Chowdhury, A. 2009. The Indonesian Labour Market: Changes and Cchallenges (London and New York: Routledge).

    Google Scholar 

  • Edwards, S. 1996. ‘Labour regulations and industrial relations in Indonesia’. Paper presented to the Ministry of Manpower-World Bank workshop on Indonesian Workers in the 21st Century, Jakarta, 2–4 April.

    Google Scholar 

  • Ezelea-Harrison, F. 2005. ‘Two-tier wage systems in agriculture: evidence from Indonesian microdata’, South Western Economic Review, vol. 32, no. 1, pp. 1–13.

    Google Scholar 

  • Fields, G.S. 2004. ‘Dualism in the labour market: a perspective on the Lewis model after half a century’, The Manchester School, vol. 72, no. 6, pp. 724–35.

    Article  Google Scholar 

  • Fraja, D.G. 1999. ‘Minimum wage legislation, work conditions and employment’, CEPR Discussion Paper No. 1524 (London: Centre for Economic Policy Research).

    Google Scholar 

  • Freeman, R. 1993. ‘Labour market institutions and policies: help or hindrance to economic development?’, Annual Proceedings of the World Bank Conference on Economic Development (Washington, DC: World Bank), pp. 117–56.

    Google Scholar 

  • Hanke, S.H. 2007. ‘Abolish rigid labour markets’, July (Washington, DC: Cato Institute).

    Google Scholar 

  • Harrison, A.; Scorse, J. 2005. ‘Improving the conditions of workers? Minimum wage legislation and anti-sweatshop activism’, California Management Review, vol. 48, no. 2, pp. 144–60.

    Article  Google Scholar 

  • Islam, I.; Chowdhury, A. 2009. Growth, Employment and Poverty Reduction in Indonesia (Geneva: ILO).

    Google Scholar 

  • Islam, I.; Nazara, S. 2000. ‘Minimum wages and the welfare of Indonesian workers’, Occasional Discussion Paper No. 3 (Jakarta: ILO).

    Google Scholar 

  • Manning, A. 2005. Monoposony in Motion: Imperfect Competition in Labour Markets (Princeton, NJ: Princeton University Press).

    Google Scholar 

  • Manning, C. 1998. Indonesian Labour in Transition: An Economic Success Story? (Cambridge: Cambridge University Press).

    Google Scholar 

  • Manning, C. 2000. ‘Labour market adjustments to Indonesia’s economic crisis: Context, trends and implications’, Bulletin of Indonesian Economic Studies, vol. 36, no. 1, pp. 105–36.

    Article  Google Scholar 

  • Manning, C. 2004. ‘Legislating for labour protection: betting on the weak or the strong?’, Working Paper in Trade and Development 04/08, Division of Economics (Canberra: Research School of Pacific and Asian Studies, Australian National University).

    Google Scholar 

  • Manning, C.; Junankar, R. 1998. ‘Choosy youth or unwanted youth? A survey of unemployment’, Bulletin of Indonesian Economic Studies, vol. 42, no. 2, pp. 143–70.

    Article  Google Scholar 

  • Mason, A.; Baptist, J. 1996. ‘How important are labour markets to the welfare of the poor?’ Paper presented to the Ministry of Manpower-World Bank workshop on ‘Indonesian Workers in the 21st Century’, Jakarta, 2–4 April.

    Google Scholar 

  • Nazara, S. 2010. ‘The Indonesian informal economy: a case study’. Report prepared for the ILO (Jakarta: ILO).

    Google Scholar 

  • Rama, M. 1996. ‘The consequences of doubling the minimum wage: the case of Indonesia’, World Bank Policy Research Working Paper no. 1643 (Washington, DC: World Bank).

    Google Scholar 

  • Sugiyarto, G. 2005. ‘Creating better and more jobs in Indonesia: a blueprint for policy action’, ERD Policy Brief no. 3 (Manila: ADB).

    Google Scholar 

  • Sugiyarto, G.; Enriga, B. 2007. ‘Does minimum wage reduce employment and training?’ (Manila and Los Banos: ADB and University of Philippines).

    Google Scholar 

  • Suryahadi, A.; Widyanti, W.; Perwira, D.; Sumarto, S. 2003. ‘Minimum wage policy and its impact on employment in the urban formal sector’, Bulletin of Indonesian Economic Studies, vol. 39, no. 1, pp. 29–50.

    Article  Google Scholar 

  • Tubagus, F. 2000. ‘The impact of the crisis on the labour market in Indonesia’. Report prepared for the ADB, Manila, 22 March.

    Google Scholar 

  • Widianto, B. 2003. Making the Most of Minimum Wages Policy (Jakarta: BAPPENAS).

    Google Scholar 

  • Wiebe, F. 1996. ‘Income insecurity and underemployment in the Indonesian informal sector’. Paper presented to the Ministry of Manpower-World Bank Workshop on ‘Indonesian Workers in the 21st Century’, Jakarta, 2–4 April.

    Google Scholar 

  • World Bank. 2007. Indonesia: Economic and Social Update (Jakarta: World Bank).

    Google Scholar 

  • Yellen, J.L. 1984. ‘Efficiency wage models of unemployment’, American Economic Review, vol. 74, no. 2, pp. 200–5.

    Google Scholar 

Download references

Authors
  1. Iyanatul Islam
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. School of Law, University of Manchester, UK

    Deirdre McCann (Senior Lecturer in the School of Law) (Senior Lecturer in the School of Law)

Copyright information

© 2011 International Labour Organization

About this chapter

Cite this chapter

Islam, I. (2011). Labour Market Regulations and the Welfare of Indonesian Workers. In: Lee, S., McCann, D. (eds) Regulating for Decent Work. Advances in Labour Studies. Palgrave Macmillan, London. https://doi.org/10.1057/9780230307834_6

Download citation

Publish with us

Policies and ethics

Search

Navigation