Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282600 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16473
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the dynamic effects of export exposure over local labor markets in Indonesia. We develop an empirical strategy to instrument exposure to exports using exposure to foreign demand shocks and validate it showing that the labor market responses are consistent with those expected from demand shocks in a spatial model. Export shocks unambiguously increase employment in Indonesia. While effects on average income per employee are ambiguous due to industry- and sectoral-compositional effects, our estimates of district-level welfare suggest that export shocks induce an increase in welfare.
Subjects: 
international trade
labor markets
inequality
poverty
jobs
JEL: 
F16
J16
O19
Document Type: 
Working Paper

Files in This Item:
File
Size
768.54 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.