Spatial Networks, Labor Supply and Income Dynamics: Evidence from Indonesian Villages

Futoshi Yamauchi, Megumi Muto, Shyamal Chowdhury (), Reno Dewina and Sony Sumaryanto

No 51571, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: This 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.

Keywords: Community/Rural/Urban Development; Labor and Human Capital (search for similar items in EconPapers)
Pages: 33
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://ageconsearch.umn.edu/record/51571/files/Paper1_Spatialnetwork_Labor2.pdf (application/pdf)

Related works:
Working Paper: Spatial networks, labor supply, and income dynamics: Evidence from Indonesian villages (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:51571

DOI: 10.22004/ag.econ.51571

Access Statistics for this paper

More papers in 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().