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Impact Evaluation of Minimum Wage Increase in Indonesia: Analysis Using Natural Experiments

Research Project

Project/Area Number 17K03794
Research Category

Grant-in-Aid for Scientific Research (C)

Allocation TypeMulti-year Fund
Section一般
Research Field Public finance/Public economy
Research InstitutionInstitute of Developing Economies, Japan External Trade Organization

Principal Investigator

Higashikata Takayuki  独立行政法人日本貿易振興機構アジア経済研究所, 地域研究センター東南アジアI研究グループ, 研究グループ長代理 (70450533)

Project Period (FY) 2017-04-01 – 2023-03-31
Project Status Completed (Fiscal Year 2022)
Budget Amount *help
¥3,770,000 (Direct Cost: ¥2,900,000、Indirect Cost: ¥870,000)
Fiscal Year 2019: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
Fiscal Year 2018: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
Fiscal Year 2017: ¥2,470,000 (Direct Cost: ¥1,900,000、Indirect Cost: ¥570,000)
Keywords最低賃金 / 地方分権 / インドネシア / 影響評価 / 雇用 / 製造業企業 / 地方分立 / 失業率 / 自然実験
Outline of Final Research Achievements

Regarded the introduction of the decentralization system in Indonesia after democratization as a natural experiment, this study tried to identify the impact of minimum wage increases on employment. Specifically, we focused on regions that were placed under the same minimum wage level before decentralization and analyzed how employment in manufacturing firms changed after facing different minimum wage levels in each local administration after decentralization. The analysis, which was limited to the Jakarta metropolitan area, found that the larger the increase in the minimum wage, the greater the decline in employment in manufacturing firms. However, as in previous studies, the extent of the decline was not significant.

Academic Significance and Societal Importance of the Research Achievements

最低賃金の影響については米国をはじめとして高所得国については分厚い先行研究がある一方で、新興国を対象とした研究はまだ少ない。新興国の労働市場においてはいまだにインフォーマル部門の就労者も多いため、高所得国とは大きな異質性がみられる地域の市場を対象として分析を積み重ねることには意義があると考えられる。加えて、インドネシアにおいては最低賃金水準が政治的にもしばしば大きく問題となっており、近年は最低賃金制度に何度も変更が加えられている。適切な運用のためにも、客観的な分析結果を提示することは重要であると考えられる。

Report

(7 results)
  • 2022 Annual Research Report   Final Research Report ( PDF )
  • 2021 Research-status Report
  • 2020 Research-status Report
  • 2019 Research-status Report
  • 2018 Research-status Report
  • 2017 Research-status Report
  • Research Products

    (2 results)

All 2021 Other

All Journal Article (1 results) (of which Peer Reviewed: 1 results) Remarks (1 results)

  • [Journal Article] The Effect of Increasing the Minimum Wage on Employment in Indonesia2021

    • Author(s)
      Takayuki Higashikata
    • Journal Title

      Journal of Southeas Asian Economies

      Volume: 38 Issue: 3 Pages: 358-374

    • DOI

      10.1355/ae38-3e

    • Related Report
      2021 Research-status Report
    • Peer Reviewed
  • [Remarks] IDE Research Columns

    • URL

      https://www.ide.go.jp/English/ResearchColumns/Columns/2022/higashikata_takayuki.html

    • Related Report
      2022 Annual Research Report

URL: 

Published: 2017-04-28   Modified: 2024-01-30  

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