Publication:
The Effect of FDI on Indonesia’s Jobs, Wages, and Structural Transformation

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dc.contributor.authorSteenbergen, Victor
dc.contributor.authorHebous, Sarah
dc.contributor.authorWihardja, Maria Monica
dc.contributor.authorPradana, Abror Tegar
dc.date.accessioned2021-08-24T13:55:16Z
dc.date.available2021-08-24T13:55:16Z
dc.date.issued2020-12-15
dc.description.abstractForeign direct investment (FDI) can provide important opportunities for middle-class jobs by stimulating employment growth, paying wage premiums, and helping to shift workers out of less productive sectors. This analysis exploits regional variations in sales to examine the effect that multinational corporations (MNCs) in the manufacturing sector have on employment and wages in Indonesia between 2007 and 2015. Using interaction effects, it explores how these effects differ by workers’ education level, occupation, and employment status. The study finds that manufacturing MNCs raise average wages in their sector. Yet, higher-educated workers benefit more, and white-collar workers see greater benefits than blue-collar workers. Women also appear to benefit more than men, as a result of the type of labor-intensive sectors MNCs engage in. The study finds evidence that manufacturing FDI can help to accelerate structural transformation, as workers move out of lower-productivity sectors (agriculture and low-skilled services) and into higher-productivity manufacturing.en
dc.identifierhttp://documents.worldbank.org/curated/en/912131629434571756/The-Effect-of-FDI-on-Indonesia-s-Jobs-Wages-and-Structural-Transformation
dc.identifier.doi10.1596/36188
dc.identifier.urihttps://hdl.handle.net/10986/36188
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectLABOR DEMAND
dc.subjectWAGE DIFFERENTIAL
dc.subjectSTRUCTURAL CHANGE
dc.subjectSTRUCTURAL TRANSFORMATION
dc.subjectJOBS
dc.subjectEMPLOYMENT
dc.subjectLABOR MARKET
dc.titleThe Effect of FDI on Indonesia’s Jobs, Wages, and Structural Transformationen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Effect of FDI on Indonesia’s Jobs, Wages, and Structural Transformation
okr.date.disclosure2021-08-20
okr.date.doiregistration2025-05-05T11:41:06.872172Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/912131629434571756/The-Effect-of-FDI-on-Indonesia-s-Jobs-Wages-and-Structural-Transformation
okr.guid912131629434571756
okr.identifier.externaldocumentum090224b0888d4e5f_1_0
okr.identifier.internaldocumentum33352583
okr.identifier.report163142
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/912131629434571756/pdf/The-Effect-of-FDI-on-Indonesia-s-Jobs-Wages-and-Structural-Transformation.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicSocial Protections and Labor::Employment and Unemployment
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Wages, Compensation & Benefits
okr.unitInvestment and Competition Global Unit
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