The Effect of Economic Structural Change on Employment Absorption in Indonesia, 1980-2019: An Input-Output Approach

Abstract

The objective of the research in this dissertation is to analyse the effect of economic structural change on employment absorption in lndonesia during the period 1980 to 1993, and projections to the year 2019. One of the main issues of this research is to determine to what extent the turning point in economic growth will be accompanied by a turning point in employment change. The turning point occurs when the percentage of Gross Domestic Product and employment accounted for by the agriculture sector is less than the proportion in manufacturing in the context of structural transformation from essentially an agrarian economy towards a modem industrialized economy. The research involves developing an inter-industry employment model for analysing change in employment structure, as well as the effect of economic structural change on employment structure and analysing the impact of policy alternatives on economic and employment structure to the year 2019.