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The Effect of Import Tariff Reduction on Unemployment in Indonesia: Regional Level Analysis Wulan Isfah Jamil; Arie Damayanti
Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning Vol. 2 No. 3 (2018): December 2018
Publisher : Ministry of National Development Planning Republic of Indonesia/Bappenas

The effect of import tariff reduction on unemployment can vary not only across sectors but also across regions, yet the empirical studies on regional analysis are still limited. This study investigates the effect of tariff reduction on unemployment in districts level in Indonesia spanning period 2000-2013. We follow the strategy of Topalova to construct regional tariff exposure in districts level. Our empirical analysis uses individual data approach to measure unemployment. By controlling the shifting in labor demand due to input tariff reduction, we find that import tariff reduction leads to an increase in unemployment and the increase is higher in district with larger employment share in net importer sectors.

Dampak Tarif Impor Output dan Input Terhadap Probabilitas Perusahaan Keluar dari Pasar Windi Agustin Maulina; Arie Damayanti
Buletin Ilmiah Litbang Perdagangan Vol 13 No 1 (2019)
Publisher : Trade Analysis and Development Agency, Ministry of Trade of Republic of Indonesia

Abstrak Secara teori, dampak tarif impor input dan output terhadap kinerja perusahaan berbeda. Namun, hal tersebut belum terbukti secara empiris di Indonesia. Penelitian ini bertujuan menganalisis dampak tarif impor output dan input terhadap probabilitas perusahaan untuk keluar dari pasar. Kajian ini menggunakan model probit yang merupakan salah satu model dari Cummulative Distribution Function (CDF), dengan menggunakan data Survei Industri Besar dan Sedang (IBS) tahun 2003-2014. Kajian ini menemukan bahwa efek kompetisi yang dihasilkan akibat penurunan tarif impor output akan meningkatkan probabilitas perusahaan untuk keluar dari pasar. Namun penurunan tarif impor input akan menurunkan probabilitas perusahaan untuk keluar dari pasar. Setelah mendisagregasi perusahaan berdasarkan beberapa karakteristik yang dapat diobservasi diperoleh bahwa perusahaan yang memproduksi barang konsumsi, perusahaan dalam industri yang padat karya, perusahaan kecil, dan perusahaan yang terdapat pada industri yang lebih kompetitif memiliki peluang utuk keluar dari pasar lebih tinggi. Kajian ini merekomendasikan penetapan kebijakan tarif impor perlu dikaji baik dari sisi jenis komoditi maupun dari sisi karakteristik perusahaan. Kata Kunci: Liberalisasi Tarif Impor, Seleksi Pasar, Probabilitas Perusahaan Keluar Abstract Theoretically, the impact of output and input import tarif on firm’s performance is different, however this have never been shown empirically in Indonesia. This study aims at examining the effect of input and output tarifs on the possibility of firms to exit. Study utilized probit model which is considered as one of the Cummulative Distribution Function (CDF) Model by Indonesian Manufacturing Firms Data from 2003-2014 it was found that competition effects resulting from lower output tarifs exerts greater impact on the likelihood of exit but decreasing input tarifs will actually reduce the probability of exit firms. After classifying our sample into a different group based on observed characteristics of industry and firm, we found firms that produce consumer good, labor intensive firm, small firms, firms in competitive industry have a higher probability to exit. The study suggested that import tariff policy needs to be assessed both in terms of commodity types and in terms of firm characteristics. Keywords: Import Tarif Liberalization, Market Selection, Firm Exit JEL Classification: F13, L25, O24

THE IMPACT OF MIGRATION ON THE WAGE DISTRIBUTION IN INDONESIA Clalisca Pravitasari; Arie Damayanti
AFEBI Economic and Finance Review Vol 3, No 2 (2018)
Publisher : Asosiasi Fakultas Ekonomi dan Bisnis Indonesia

Research on the impact of migration on workers' wages in destination areas has long been debated in the literature. However, studies that link migration to wage rates in different percentiles along the distribution have not been widely implemented, as migration does not have the same impact on wage levels in all groups of workers. By establishing a counterfactual using the semi-parametric DFL method of National Labor Force Survey data, this study found that migration promotes changes in the distribution of wages, especially in the upper and lower percentiles. After controlling the magnitude of in-migration in each percentile group by using the ordinary least square method, this study also proves that migration leads to wage decreasing in percentile groups where migrant workers are overrepresented, which is in the 75th and 90th percentile groups. Meanwhile, no negative impacts were found on wage levels in the lower middle percentile. In fact, migration has proven to encourage an increase in the average wage of workers in the lowest percentile of the distribution.JEL Classification: J01, J11, J61Keywords: counterfactual, migration, wage distribution

Kesenjangan Upah Antargender di Indonesia: Bukti Empiris di Sektor Manufaktur Laili, Martesa Husna; Damayanti, Arie
Jurnal Ekonomi dan Pembangunan Indonesia Vol. 18, No. 3
Publisher : UI Scholars Hub

Show Abstract | Download Original | Original Source | Check in Google Scholar

Theoretically, in the labor market without discrimination, wages should be paid according to productivity. Unlike other studies that use worker level data, this study will identify gender wage discrimination using firm-level data. Using Industrial Survey Data in 1996 and 2006, the gender wage ratio and gender productivity ratio were estimated simultaneously using the nonlinear seemingly unrelated regression (NLSUR) with least square estimator. We find that there is wage discrimination against women in the manufacturing sector. After disaggregating the firms by trade orientation, we show that wage discrimination against women occurs in non-exporting firms. While in exporting firms there is no wage discrimination.

Investigating the Effects of Minimum Wage and Non-compliance on Formal Employment: Evidence in Java Island Mutiara Gita Fadhilah; Arie Damayanti
EKO-REGIONAL Vol 19, No 1 (2024)
Publisher : Jurusan Ilmu Ekonomi dan Studi Pembangunan Universitas Jenderal Soedirman

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32424/1.erjpe.2024.19.1.3653

There is an ongoing debate in the field of minimum wage literature, with different theories predicting varying impacts on employment. According to neoclassical theory, when the minimum wage increases and becomes binding, employment decreases. However, the monopsony labor market theory predicts that minimum wage can increase employment. Empirical examination in Indonesia has yielded mixed results, depending on the data and empirical model specification. Our study used panel data of regencies/cities in Java Island between 2017 to 2021 period and the fixed effect estimation method. We found that the minimum wage can increase employment in the formal sector, but the effect diminishes as non-compliance increases. This suggests that the benefit of a minimum wage in protecting workers depends on enforcement and that weak enforcement and setting a minimum wage too high may cause more non-compliance, which could harm formal employment. Keywords: Minimum wage, Compliance, Employment

Apakah Global Value Chain (GVC) Memengaruhi Permintaan Tenaga Kerja? Studi Empiris dari Industri Manufaktur Indonesia Tahun 2010–2015 Ramana, Febria; Damayanti, Arie
Buletin Ilmiah Litbang Perdagangan Vol. 18 No. 2 (2024): BILP
Publisher : National Research and Innovation Agency

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55981/bilp.2024.792

Participation in the Global Value Chain (GVC) encourages domestic industry development and increases productivity, expanding labour demand. However, theoretically, a firm’s participation in GVC can increase the labour demand through the scale effect and reduce the labour demand due to the substitution effect. This issue is relevant in Indonesia because the extent of GVC participation among firms in the manufacturing sector is still low. This study examines the correlation of GVC participation in the manufacturing subsector to labour demand. This study uses Asian Development Bank (ADB) calculations that divide manufacturing subsector GVC participation into three types, namely Pure Forward Participation (PFP), Two-Sided Participation (TSP), and Pure Backward Participation (PBP). The data used is panel data from 2010-2015, the Large and Medium Industry Survey conducted by Statistics Indonesia (BPS) and analysed using a linear dynamic model. The analysis found that in the short term, (i) PFP is positively correlated, (ii) TSP tends to be negatively correlated but not significant, and (iii) PBP is positively correlated but not significant. All three types of participation significantly affect labour demand in the long run. Therefore, manufacturing industry linkages in PFP and PBP must be improved to increase labour absorption in the manufacturing sector.

The Role of Internet Usage on Gender Wage Gap: Evidence From Indonesia Dewi, Martina Nurma; Damayanti, Arie
Journal of Developing Economies Vol. 10 No. 1 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i1.60467

This study analyzes the effect of internet usage on the gender wage gap within Indonesia’s labor market. Using data from the 2022 National Labor Force Survey (Sakernas), the research employs robust least square regression, quantile regression, and the Oaxaca-Blinder Decomposition Method to assess the differential effects of internet use on wages across genders. The findings indicate that internet usage in main job significantly increases wages for both men and women while also narrowing the gender wage gap which varies by income level and job type. This effect is more pronounced in white-collar jobs and among higher-income groups compared to blue-collar jobs and middle-income groups. Additionally, the study underscores that unexplained factors, including discrimination, play a significant role in perpetuating the gender wage gap.

Investigating the Effects of Minimum Wage and Non-Compliance on Formal Employment: Evidence in Java Island Fadhilah, Mutiara Gita; Damayanti, Arie
Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah Vol 19 No 1 (2024): March 2024
Publisher : Faculty of Economics and Business Universitas Jenderal Soedirman

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32424/er.v19i1.16855

There is an ongoing debate in the field of minimum wage literature, with different theories predicting varying impacts on employment. According to neoclassical theory, when the minimum wage increases and becomes binding, employment decreases. However, the monopsony labor market theory predicts that minimum wage can increase employment. Empirical examination in Indonesia has yielded mixed results, depending on the data and empirical model specification. Our study used panel data of regencies/cities in Java Island between 2017 to 2021 period and the fixed effect estimation method. We found that the minimum wage can increase employment in the formal sector, but the effect diminishes as non-compliance increases. This suggests that the benefit of a minimum wage in protecting workers depends on enforcement and that weak enforcement and setting a minimum wage too high may cause more non-compliance, which could harm formal employment.

Investigating the Effects of Minimum Wage and Non-compliance on Formal Employment: Evidence in Java Island Fadhilah, Mutiara Gita; Damayanti, Arie
EKO-REGIONAL Vol 19 No 1 (2024)
Publisher : Jurusan Ilmu Ekonomi dan Studi Pembangunan Universitas Jenderal Soedirman

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32424/1.erjpe.2024.19.1.3653

There is an ongoing debate in the field of minimum wage literature, with different theories predicting varying impacts on employment. According to neoclassical theory, when the minimum wage increases and becomes binding, employment decreases. However, the monopsony labor market theory predicts that minimum wage can increase employment. Empirical examination in Indonesia has yielded mixed results, depending on the data and empirical model specification. Our study used panel data of regencies/cities in Java Island between 2017 to 2021 period and the fixed effect estimation method. We found that the minimum wage can increase employment in the formal sector, but the effect diminishes as non-compliance increases. This suggests that the benefit of a minimum wage in protecting workers depends on enforcement and that weak enforcement and setting a minimum wage too high may cause more non-compliance, which could harm formal employment. Keywords: Minimum wage, Compliance, Employment

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