Spatial Networks, Labor Supply and Income Dynamics: Evidence from Indonesian Villages
AbstractThis paper examines the impact of spatial connectivity development on household income growth and non-agriculture labor supply, combining household panel data and village census in Indonesia. Empirical results show that the impacts of the improvement of local road quality in the area (positively correlated with transportation speed) on income growth and the transition to non-agricultural labor markets depends on the distance to economic centers and household education. In particular, post-primary education significantly increases the benefit from the local spatial connectivity improvement in remote areas and labor transition to non-agricultural sectors. Education and local road quality are complementary, mutually increasing income growth and non-agricultural labor income in remote areas. The gain from improvements in local connectivity (measured by the average road quality) depends on village remoteness and initial household-level endowment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51571.
Date of creation: 2009
Date of revision:
Income growth; Spatial Connectivity; Rural economy; Education; Indonesia; Community/Rural/Urban Development; Labor and Human Capital; O12; R40;
Other versions of this item:
- Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal & Dewina, Reno & Sumaryanto, Sony, 2009. "Spatial networks, labor supply, and income dynamics: Evidence from Indonesian villages," IFPRI discussion papers 897, International Food Policy Research Institute (IFPRI).
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
- Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
- Binswanger, Hans P. & Khandker, Shahidur R & Rosenzweig, Mark R., 1989.
"How infrastructure and financial institutions affect agricultural output and investment in India,"
Policy Research Working Paper Series
163, The World Bank.
- Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993. "How infrastructure and financial institutions affect agricultural output and investment in India," Journal of Development Economics, Elsevier, vol. 41(2), pages 337-366, August.
- Marcel Fafchamps & Forhad Shilpi, 2003.
"The spatial division of labour in Nepal,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 39(6), pages 23-66.
- Marcel Fafchamps & Forhad Shilpi, 2000. "The Spatial Division of Labor in Nepal," Economics Series Working Papers 44, University of Oxford, Department of Economics.
- Fafchamps, Marcel & Shilpi, Forhad, 2002. "The spatial division of labor in Nepal," Policy Research Working Paper Series 2845, The World Bank.
- Aschauer, David Alan, 1989.
"Is public expenditure productive?,"
Journal of Monetary Economics,
Elsevier, vol. 23(2), pages 177-200, March.
- Marcel Fafchamps & Forhad Shilpi, 2003.
"Cities and Specialization: Evidence from South Asia,"
Economics Series Working Papers
139, University of Oxford, Department of Economics.
- Marcel Fafchamps & Forhad Shilpi, 2005. "Cities and Specialisation: Evidence from South Asia," Economic Journal, Royal Economic Society, vol. 115(503), pages 477-504, 04.
- Stiglitz, Joseph E, 1976. "The Efficiency Wage Hypothesis, Surplus Labour, and the Distribution of Income in L.D.C.s," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 185-207, July.
- Catherine J. Morrison & Amy Ellen Schwartz, 1992.
"State Infrastructure and Productive Performance,"
NBER Working Papers
3981, National Bureau of Economic Research, Inc.
- Dewina, Reno & Yamauchi, Futoshi, 2010. "Human Capital, Mobility, and Income Dynamics: Evidence from Indonesia," Working Papers 11, JICA Research Institute.
- Fafchamps, Marcel & Wahba, Jackline, 2006.
"Child labor, urban proximity, and household composition,"
Journal of Development Economics,
Elsevier, vol. 79(2), pages 374-397, April.
- Marcel Fafchamps & Jackline Wahba, 2004. "Child Labor, Urban Proximity, and Household Composition," Economics Series Working Papers 213, University of Oxford, Department of Economics.
- Fafchamps, Marcel & Wahba, Jackline, 2006. "Child Labor, Urban Proximity and Household Composition," IZA Discussion Papers 1966, Institute for the Study of Labor (IZA).
- Fafchamps, Marcel, 1993. "Sequential Labor Decisions under Uncertainty: An Estimable Household Model of West-African Farmers," Econometrica, Econometric Society, vol. 61(5), pages 1173-97, September.
- Lars-Hendrik Roller & Leonard Waverman, 2001.
"Telecommunications Infrastructure and Economic Development: A Simultaneous Approach,"
American Economic Review,
American Economic Association, vol. 91(4), pages 909-923, September.
- Lars-Hendrik Röller & Leonard Waverman, 1996. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," CIG Working Papers FS IV 96-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Röller, Lars-Hendrik & Waverman, Leonard, 2000. "Telecommunications Infrastructure And Economic Development: A Simultaneous Approach," CEPR Discussion Papers 2399, C.E.P.R. Discussion Papers.
- Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2004. "Reforms, Investment, and Poverty in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 395-421, January.
- Amartya K. Sen, 1966. "Peasants and Dualism with or without Surplus Labor," Journal of Political Economy, University of Chicago Press, vol. 74, pages 425.
- World Bank, 2003. "World Development Indicators 2003," World Bank Publications, The World Bank, number 13920, March.
- Rosenzweig, Mark R, 1980. "Neoclassical Theory and the Optimizing Peasant: An Econometric Analysis of Market Family Labor Supply in a Developing Country," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 31-55, February.
- Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May.
- Minten, Bart & Kyle, Steven, 1999. "The effect of distance and road quality on food collection, marketing margins, and traders' wages: evidence from the former Zaire," Journal of Development Economics, Elsevier, vol. 60(2), pages 467-495, December.
- Wong, Ho Lun & Luo, Renfu & Zhang, Linxiu & Rozelle, Scott, 2013. "Providing quality infrastructure in rural villages: The case of rural roads in China," Journal of Development Economics, Elsevier, vol. 103(C), pages 262-274.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.