Axellina Muara Setyanti


Indonesia is a country that has relied on the agricultural sector as an economic base for decades. On the other hand, the more developed an economy is, the higher the reserves in the service sector. Despite this declining GDP, agriculture is still very important to the Indonesian economy, even though it is 14 percent of GDP. This study analyzes structural transformation through shift-share analysis. It looks at the tendency of labor to enter the agricultural, manufacturing and service sectors using probit regression on Sakernas microdata. This study found that the service sector continues to grow and outperforms the agricultural sector both in terms of added value and employment. The results of the shift-share show shrinkage in the productivity of agricultural sector while the manufacturing and service sectors are growing. This fact proves a change in economic structure. The characteristics of the agricultural sector labor force have a higher tendency for male workers, live in rural areas, are relatively older and have fewer family members, are less educated, do not have training certification, and have no previous work experience.

service sector, agricultural sector, manufacturing sector, probit, structural transformation


service sector, agricultural sector, manufacturing sector, probit, structural transformation

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