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INCOME AND SUBTITUTION EFFECT OF INDONESIAN LABOUR SUPPLY

Economic Journal of Emerging Markets

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Title INCOME AND SUBTITUTION EFFECT OF INDONESIAN LABOUR SUPPLY
 
Creator Ranas, Rindang Rayo
 
Description Indonesia is the fifth largest populated country in the world with abundance of labour supply. There are two types of analysis that can explain the phenomenon of labour supply, namely the income effect and substitution effect. The purpose of this study is to estimate the income effect and substitution effect of labour supply in Indonesia during 2005-2008. Using a panel data analysis technique, the results show that the income effect dominates the substitution effect in influencing the level of labour supply in Indonesia. This means that changes in labour income is more influential on a person's decision not to engage in the labour market.Keywords: Labour supply, income effect, substitution effect, panel dataJEL classification numbers: J01, J22, J29
 
Publisher Universitas Islam Indonesia
 
Contributor —
 
Date 2011-09-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://journal.uii.ac.id/JEP/article/view/2317
 
Source Economic Journal of Emerging Markets; Volume 3 Issue 1, 2011; 17-26
2502-180X
2086-3128
 
Language eng
 
Relation http://journal.uii.ac.id/JEP/article/view/2317/2116