Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia
Arya Gaduh (),
Alexander Rothenberg () and
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Alexander Rothenberg: RAND Corporation
No wp2015-026, Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics
We use a natural experiment in Indonesia to provide causal evidence on the role of location-specific human capital and skill transferability in shaping the spatial distribution of productivity. From 1979â€“ 1988, the Transmigration Program relocated two million migrants from rural Java and Bali to new rural settlements in the Outer Islands. Villages assigned migrants from regions with more similar agroclimatic endowments exhibit higher rice productivity and nighttime light intensity one to two decades later. We find some evidence of migrantsâ€™ adaptation to agroclimatic change. Overall, our re- sults suggest that regional productivity differences may overstate the potential gains from migration.
Keywords: Internal Migration; Comparative Advantage; Spatial Labor Allocation; Agricultural Adaptation (search for similar items in EconPapers)
JEL-codes: J43 J61 O12 O13 O15 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-mig, nep-sea and nep-ure
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Journal Article: Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bos:wpaper:wp2015-026
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