Abstract
This paper reviews trends in real wages in Indonesia since the early 1970s. It finds that there has been wage growth in a range of agricultural and non-agricultural sectors. However, growth has been uneven across sectors and for different periods. After the oil boom, wage growth slowed during the second half of the 1980s, although it picked up again in the 1990s. The paper discusses the relationship between various episodes of economic growth and labour market developments which might have contributed to patterns of wage change in various sectors. It also examines the influence of price deflators on real wage change, and compares trends in real earnings with trends in wage rates.
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