The Babeldaob Road: The Impact of Road Construction on Rural Labor Force Outcomes in the Republic of Palau
This research examines the impact of road construction on rural labor force outcomes in a developing country. A new road built in the Republic of Palau links formerly inaccessible rural areas to more urban wage sector employment. We use two censuses conducted five years apart which perfectly bracket the road construction period. The data allow us to identify households that moved in the intervening five year period, thereby correcting any endogenous movement attributable to the road construction. Utilizing a difference-in-difference regression strategy and matched panel data, we find that households impacted by the new road construction tend to increase their wage sector employment, decrease their self-employment in agriculture, decrease the number of international migrants sent abroad and increase their ownership of automobiles. The findings also show that inequality decreases both within and between regions. The impact of road construction on average household wages and income is negligible.
|Date of creation:||Nov 2006|
|Date of revision:|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
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.:
- Peter Warr, 2005.
"Roads and Poverty in Rural Laos,"
Departmental Working Papers
2005-04, The Australian National University, Arndt-Corden Department of Economics.
- Warr, Peter G., 2006. "Roads and Poverty in Rural Laos," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139926, Australian Agricultural and Resource Economics Society.
- Giles, John, 2006.
"Is life more risky in the open? Household risk-coping and the opening of China's labor markets,"
Journal of Development Economics,
Elsevier, vol. 81(1), pages 25-60, October.
- John Giles, 2000. "Is Life More Risky in the Open? Household Risk-Coping and the Opening of China's Labor Markets," William Davidson Institute Working Papers Series 314, William Davidson Institute at the University of Michigan.
- van de Walle, Dominique, 2002.
"Choosing Rural Road Investments to Help Reduce Poverty,"
Elsevier, vol. 30(4), pages 575-589, April.
- Van de Walle, Dominique, 2000. "Choosing rural road investments to help reduce poverty," Policy Research Working Paper Series 2458, The World Bank.
- 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.
- Antonio Estache, 1994. "World Development Report: Infrastructure for Development," ULB Institutional Repository 2013/44144, ULB -- Universite Libre de Bruxelles.
- Steven Were Omamo, 1998. "Transport Costs and Smallholder Cropping Choices: An Application to Siaya District, Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 116-123.
- Gibson, John & Rozelle, Scott, 2003. "Poverty and Access to Roads in Papua New Guinea," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 159-85, October.
- Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers 121, World Bank - Living Standards Measurement.
- Akee, Randall K. Q., 2007.
"Who Leaves and Who Returns? Deciphering Immigrant Self-Selection from a Developing Country,"
IZA Discussion Papers
3268, Institute for the Study of Labor (IZA).
- Randall K. Q. Akee, 2010. "Who Leaves and Who Returns? Deciphering Immigrant Self-Selection from a Developing Country," Working Papers id:2829, eSocialSciences.
- Jacoby, Hanan C, 2000.
"Access to Markets and the Benefits of Rural Roads,"
Royal Economic Society, vol. 110(465), pages 713-37, July.
- Jyotsna Jalan & Martin Ravallion, 1998. "Geographic Poverty Traps?," Boston University - Institute for Economic Development 86, Boston University, Institute for Economic Development.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp2452. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.