Choosy Youth or Unwanted Youth? A Survey of Unemployment

Abstract

This paper examines structure and change in unemployment in Indonesia from the 1970s through to 1996 The analysis focuses on high unemployment rates among urban youth, set in the context of similar problems experienced in other developing countries. It also deals with some of the conceptual and measurement issues. It is concluded that high youth unemployment is partly a queuing phenomenon among middle class families, related to processes of job search and wage structure. But rates of under-utilisation are also high among children of poorer households in the working age papulation Over time, the paper finds considerable stability in the structure of unemployment, with some tendency for overall rates to increase Some rises in unemplnyment were experienced by youth with either low educational status or tertiary qualifications, and by women Explanations include increased minimum wages and a slowdown in manufacturing activity, although changing definations have also played a part.

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Notes on contributors

P. N. Junankar

Parts of this paper are based on analysis for an earlier study by Manning and Junankar (1994) undertaken for the Ministry of Manpower, Much of the data presented in that report have been updated and Further analysed The authors particularly thank staff members of the Demographic Institute, University of Indonesia, of the Population Studies Centre at Gadjah Mada University, of Satya Wacana University and of the Economics Faculty, Andalas University, for comments at seminars given at these institutions in 1994 We also greatly appreciate the helpful comments of three anonymous referees