The differential pattern of trade over the two sub-periods analyzed in this paper influenced the sectoral patterns of employment and skills demand. The 2005-2010 mining boom was associated with a shift in employment away from manufacturing towards primary commodities, implying a reversion in the country’s industrialization process that had begun in the 1980s (World Bank, 2016). By contrast, the share of manufactures in employment in tradable industries rose from 2011 to 2015, and this shift from primary commodity to manufacturing jobs in tradable industries implies an adjustment in the skills demanded by employers. As a result, the change in the value of total exports is expected to have different impacts on the demand for different types of skills in each of the sub-periods we analyze.

Besides the commodity boom, Indonesian integration in the global economy over the entire period covered in the study is partly explained by its participation in global value chains (GVCs). By 2011, 43.5% of the Indonesian exports were part of GVCs and this participation was mainly driven by downstream links, i.e., other countries using Indonesian intermediates in their exports (OECD, 2015). Mining and chemicals are the two industries most strongly involved in GVCs. In 2009, around 13% and 7% of Indonesian exports were from the mining and chemical industries respectively and had a GVCs component (OECD, 2013).

Panel B of Table 2 describes the five skill measures we use as outcome variables. Non-routine manual, routine cognitive, and routine manual are the most important skills in Indonesian tradable industries in both sub-periods. However, their changes over time differed, depending on the subperiod analyzed. Between 2005 and 2010, the use of non-routine manual, routine cognitive, and routine manual skills fell, while non-routine interpersonal and non-routine analytical increased their importance. This pattern is consistent with the evidence observed for other low- and middleincome countries (World Bank, 2016). During 2011-2015, on the other hand, all skills measures exhibited a stable pattern, with a small increase in the use of non-routine skills and a small reduction in the use of other skills.

Changes in the use of skills reflected changes in the structure of production. Between 2005 and 2010, production and exports were focused on commodities. Panel A of Table 3 shows that the mining industry used non-routine analytical and interpersonal skills more intensively than other industries during the commodity boom. On the other hand, the sub-period 2011-2015 was characterized by an increase in the participation of manufacturing products in export activities. Panel B of Table 3 shows that manufacturing industries used non-routine manual skills more intensively relative to other industries during 2011-2015.<sup>4</sup> High-educated workers (those with at least complete secondary education) made a larger use of analytical and interpersonal skills, and a lower use of non-routine manual and routine skills than low-educated workers in both sub-periods. Similarly, women make a more intensive use of

> 4 We also calculated the average skill measures for high- and low-export industries. We find that during 2005-2010, industries in the top decile of the export value distribution used analytical and interpersonal skills more intensively than industries exporting less and made lower use of non-routine manual and routine skills. During 2011-2015, highexport industries stopped being more intensive in the use of analytical and interpersonal skills in comparison to lowexport industries.

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