Foreign multinational corporations (MNCs) have accounted for important shares of employment and production in Indonesian manufacturing since 1975, and these shares increased especially rapidly in the early to mid-1990s. These increases were concentrated in the machinery industries and in MNCs...

The purpose of this paper is to examine the efficiency of labor markets for workers with different levels of educational achievement in Indonesian manufacturing plants in 1996. Specifically, the paper asks (1) are earnings for more educated workers higher than for less educated workers, and (2)...