Measuring Unemployment in Developing Countries: The Case of Indonesia

22 Pages Posted: 31 Aug 2007

See all articles by Daniel Suryadarma

Daniel Suryadarma

Australian National University (ANU) - Arndt-Corden Department of Economics; SMERU Research Institute

Asep Suryahadi

SMERU Research Institute

Sudarno Sumarto

SMERU Research Institute

Abstract

Measuring unemployment in developing countries is not straightforward due to the presence of a large number of discouraged workers. Including them into the labor force is sometimes appropriate in order to reflect the true state of unemployment. However, the decision must be based on careful research. This study provides a case study of Indonesia, whose decision to include discouraged workers into its labor force resulted in an artificially high unemployment rates and disguised the actual post-crisis decline in unemployment in Indonesia. The discouraged workers can be classified based on their willingness to work. If Indonesia still wants to include discouraged workers into the labor force, only those willing to work should be included.

Suggested Citation

Suryadarma, Daniel and Suryahadi, Asep and Sumarto, Sudarno, Measuring Unemployment in Developing Countries: The Case of Indonesia. Labour, Vol. 21, No. 3, pp. 541-562, September 2007, Available at SSRN: https://ssrn.com/abstract=1011283 or http://dx.doi.org/10.1111/j.1467-9914.2007.00374.x

Daniel Suryadarma (Contact Author)

Australian National University (ANU) - Arndt-Corden Department of Economics ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

SMERU Research Institute ( email )

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Jakarta, 10310
Indonesia
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HOME PAGE: http://www.smeru.or.id

Asep Suryahadi

SMERU Research Institute ( email )

Jl. Cikini Raya No. 10A
Jakarta, 10330
Indonesia

HOME PAGE: http://www.smeru.or.id

Sudarno Sumarto

SMERU Research Institute ( email )

Jl. Tulung Agung No. 46
Jakarta, 10310
Indonesia

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