Spatial networks, labor supply, and income dynamics: Evidence from Indonesian villages
Abstract"This paper uses household panel and village census data from Indonesia to examine the impact of spatial connectivity (road) development on household income growth and nonagricultural labor supply. The empirical results show that the impacts of improvements in local road quality (which positively correlate with transportation speed) on income growth and the transition to nonagricultural labor markets depend on the distance to economic centers and the household education level. In particular, postprimary education significantly increases the benefit from local spatial connectivity improvement in remote areas and promotes labor transition to nonagricultural sectors. Education and local road quality are complementary, mutually increasing income growth and nonagricultural labor income in remote areas. The gain from improvements in local connectivity (measured by average road quality) depends on village remoteness and initial household-level endowments." from authors' abstract
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Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 897.
Date of creation: 2009
Date of revision:
income growth; Spatial connectivity; Rural economy; Education; Social protection; Human capital;
Other versions of this item:
- Yamauchi, Futoshi & Muto, Megumi & Chowdhury, Shyamal K. & Dewina, Reno & Sumaryanto, Sony, 2009. "Spatial Networks, Labor Supply and Income Dynamics: Evidence from Indonesian Villages," 2009 Conference, August 16-22, 2009, Beijing, China 51571, International Association of Agricultural Economists.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-DEV-2009-09-26 (Development)
- NEP-GEO-2009-09-26 (Economic Geography)
- NEP-SEA-2009-09-26 (South East Asia)
- NEP-URE-2009-09-26 (Urban & Real Estate Economics)
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