Rural Employment Creation in Java: Lessons from the Green Revolution and Oil Boom

Abstract

Rapid economic growth has had a favorable impact on employment and incomes in rural Java [Indonesia]. Despite characterization of the island as a classic case of labor surplus and the introduction of labor-displacing technology in rice recent agricultural employment growth has been high by Third World standards. Nonagricultural employment creation has been heavily concentrated in cities. This concentration is attributable to import-substitution-oriented manufacturing growth and the distribution of oil boom expenditures. The rural population has benefited from higher labor mobility but the overall urban bias in job creation has discriminated against them. Future prospects are clouded by the cutback in transmigration and the slowdown in rice production. (SUMMARY IN FRE AND SPA) (EXCERPT)

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