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Forecasting Employment Growth in Indonesia

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This note discusses the dangers of using the employment-output elasticity to forecast employment creation in Indonesia. It demonstrates the unreliability of employment-output elasticity estimates for Indonesia obtained using various methods, and argues, that, in addition to the estimation problems, the elasticity method has inherent weaknesses that should preclude its use to forecast employment growth in a dynamic world.
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Document Type: Research Article

Affiliations: Griffith University

Publication date: December 1, 1997

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