Wage Trends in Rice Production on Java: 1976–1988

Abstract

Lack of consensus among researchers in Indonesia concerning real wage trends in rice production has generated disagreement over rural labour market conditions on Java. This paper identifies some empirical difficulties associated with measuring real wages, difficulties which have contributed to conflicting results in the literature. It is argued that the choice of deflator and the time period of analysis play a significant role in the calculation of real wages. In addition, the regional dimension of analysis is shown to be important, particularly during certain discrete time periods in recent history.

Additional information

Notes on contributors

Rosamond Naylor

Research Associate of the Institute for International Studies, Stanford University. Portions of the research were funded by the Government of Indonesia and the US Agency for International Development. The author wishes to thank Walter Falcon, Scott Pearson and Peter Timmer for their constructive comments on the content and organisation of this article; Jeffrey Williams and Anne Peck for their helpful suggestions on the statistical analysis of real wages; and staff members of BPS and BULOG for assistance in gathering primary and secondary wage and price data.