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The Measurement and Trends of Unemployment in Indonesia: The Issue of Discouraged WorkersDaniel SuryadarmaAustralian National University (ANU) - Arndt-Corden Department of Economics Asep SuryahadiSMERU Research Institute Sudarno SumartoSMERU Research Institute July 2005 Abstract: This study reviews the measures of unemployment used in Indonesia. The finding indicates that the relaxation of labor force definition in 2001 by including discouraged workers results in artificially high unemployment rates and disguises the actual decline in unemployment post-crisis. Another finding indicates that discouraged workers in Indonesia are not confined only to the poor and those who are denied access to the proper job market. We recommend that, if Indonesia still wants to utilize a broader definition of the labor force, it should adhere to the ILO's recommendation of only including those discouraged workers who are still willing to work.
Number of Pages in PDF File: 26 Keywords: discouraged workers, open unemployment, measurement, Indonesia JEL Classification: J60 working papers seriesDate posted: December 5, 2005Suggested CitationContact Information
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