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Local Labor Market Dynamics and Export Shocks: Theory and Evidence from Indonesia

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dc.contributor.authorGóes, Carlos
dc.contributor.authorSegnana, Juan
dc.contributor.authorRobertson, Raymond
dc.contributor.authorLopez-Acevedo, Gladys
dc.date.accessioned2024-07-01T18:47:55Z
dc.date.available2024-07-01T18:47:55Z
dc.date.issued2024-07-01
dc.description.abstractThis paper studies the dynamic effects of export exposure on local labor markets in Indonesia, that is, how an increase in exports affects a range of labor market indicators over time. The paper develops an empirical strategy to instrument exposure to foreign demand shocks and validates it by showing that labor market responses are consistent with what a quantitative spatial model would predict after demand shocks. The results show that employment, labor force, real wages, and real wage bills increase more in districts that are more exposed to foreign demand shocks—that is, where exports increase more—relative to the least exposed regions. Extending the analysis over multiple response horizons shows that these shocks persist six years after the foreign demand shock. Lastly, employment responses are stronger among skilled workers relative to unskilled workers and in the formal sector relative to the informal sector.en
dc.identifierhttp://documents.worldbank.org/curated/en/099223106272483439/IDU1911b27f41063814d74183781ac281199422f
dc.identifier.doi10.1596/41804
dc.identifier.urihttps://hdl.handle.net/10986/41804
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10829
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectINTERNATIONAL TRADE
dc.subjectLABOUR MARKETS
dc.subjectINFORMALITY
dc.subjectGENDER
dc.subjectGENDER EQUALITY
dc.subjectSDG 5
dc.subjectINDUSTRY, INNOVATION AND INFRASTRUCTURE
dc.subjectSDG 9
dc.titleLocal Labor Market Dynamics and Export Shocksen
dc.title.subtitleTheory and Evidence from Indonesiaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleLocal Labor Market Dynamics and Export Shocks: Theory and Evidence from Indonesia
okr.date.disclosure2024-07-01
okr.date.lastmodified2024-06-27T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099223106272483439/IDU1911b27f41063814d74183781ac281199422f
okr.guid099223106272483439
okr.identifier.docmidIDU-911b27f4-0638-4d74-8378-ac281199422f
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10829
okr.identifier.doihttps://doi.org/10.1596/41804
okr.identifier.externaldocumentum34351224
okr.identifier.internaldocumentum34351224
okr.identifier.reportWPS10829
okr.import.id4651
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099223106272483439/pdf/IDU1911b27f41063814d74183781ac281199422f.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.topicInternational Economics and Trade::Trade and Labor
okr.topicSocial Protections and Labor::Labor Markets
okr.topicGender::Gender and Economics
okr.topicSocial Protections and Labor::Employment and Unemployment
okr.unitEFI-Poverty and Equity-GE (EPVGE)
relation.isAuthorOfPublication35e4efde-3fff-56a6-9ba4-91b2899f7dfc
relation.isAuthorOfPublication268c09e1-715c-55a0-bb0c-359d92eab2e2
relation.isAuthorOfPublication.latestForDiscovery35e4efde-3fff-56a6-9ba4-91b2899f7dfc
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
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