Center for International and Development Economics Research

This study examines the relationship between rising manufacturing employment and school enrollment in Indonesia from 1985 to 1995, a time of rapid industrialization. In comparison with cross- national studies, this study has a larger sample size of regions, defines data more consistently, and conducts better checks for causality and specification. Overall, enrollment is slightly higher and youth labor force participation slightly lower in regions with more manufacturing. The causal links between manufacturing and enrollments remain unclear. At the household level, employment of adult females in manufacturing is associated with lower enrollment, higher labor force participation, and more household responsibilities for female youth.