ESTIMATING THE IMPACT OF A FINANCIAL CRISIS—COMBINING RAPID QUALITATIVE STUDIES WITH NATIONALLY REPRESENTATIVE SURVEYS

Abstract This paper tests the conclusions of a qualitative study on the impact of the financial crisis on the labour market in Indonesia using evidence from nationally representative labour force surveys from before and after the onset of the crisis. We find that Indonesia weathered the storm rather well: there is no evidence for increased school dropout; labour force participation fell, particularly for young workers, whilst unemployment rose for the young, but fell for workers over 25 years old. Surprisingly, real wages for employees rose during the crisis period, although those in the informal sector did not benefit to the same extent. Copyright © 2013 John Wiley & Sons, Ltd.