Roads, labor markets, and human capital: evidence from rural Indonesia

Futoshi Yamauchi

No 7139, Policy Research Working Paper Series from The World Bank

Abstract: This paper uses household panel data from rural Indonesia to examine the impact of road quality on labor supply and wages. First, road projects are found to increase transportation speed. Second, the empirical results from intra-village variations of household endowments and labor market behavior show that an increase in transportation speed raised wages in nonagricultural and agricultural employment, and was associated with a decline in working time in agricultural employment, for households whose members are relatively educated. The findings support potential complementarity between road quality and education.

Keywords: Transport Economics Policy&Planning; Roads&Highways; Housing&Human Habitats; Labor Policies; Road Safety (search for similar items in EconPapers)
Date: 2014-12-01
New Economics Papers: this item is included in nep-agr, nep-sea, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:7139

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