Main Article Content

Abstract

The effect of import tariff reduction on unemployment can vary not only across sectors but also across regions, yet the empirical studies on regional analysis are still limited. This study investigates the effect of tariff reduction on unemployment in districts level in Indonesia spanning period 2000-2013. We follow the strategy of Topalova to construct regional tariff exposure in districts level. Our empirical analysis uses individual data approach to measure unemployment. By controlling the shifting in labor demand due to input tariff reduction, we find that import tariff reduction leads to an increase in unemployment and the increase is higher in district with larger employment share in net importer sectors.

Keywords

urban agricultural land sustainable urban agricultural land protection

Article Details

Author Biographies

Wulan Isfah Jamil, Statistics Indonesia

A staff at Statistics Indonesia (BPS) Sulawesi Tenggara and a student of Postgraduate Program in Economics, Faculty of Economics and Business, Universitas Indonesia

Arie Damayanti, Universitas Indonesia

A lecturer at the Postgraduate Program in Economics, Faculty of Economics and Business, Universitas Indonesia.

How to Cite
Wulan Isfah Jamil, & Arie Damayanti. (2018). The Effect of Import Tariff Reduction on Unemployment in Indonesia: Regional Level Analysis. Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 2(3), 241-258. https://doi.org/10.36574/jpp.v2i3.49