Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia
This paper uses farm panel data from Indonesia to examine dynamic patterns of land use, capital investments, and wages in agriculture. The empirical analysis shows that an increase in real wages has induced the substitution of labor by machines amo...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/02/19154151/wage-growth-landholding-mechanization-agriculture-evidence-indonesia http://hdl.handle.net/10986/17324 |
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okr-10986-173242021-04-23T14:03:37Z Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia Yamauchi, Futoshi AGRARIAN STRUCTURE AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL EMPLOYMENT AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURAL SECTORS AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURAL WORKERS AGRICULTURE ATTRITION AVERAGE WAGES CAPITAL INVESTMENTS CLIMATIC ZONES CROP CROP INCOME CROP YIELD CULTIVATED LAND CULTIVATION DAILY WAGE DEVELOPMENT ECONOMICS ECONOMIC GROWTH ECONOMICS EMPLOYMENT OPPORTUNITIES FAMILY LABOR FARM FARM EFFICIENCY FARM LABOR FARM LAND FARM PRODUCTION FARM PRODUCTIVITY FARM SIZE FARM WORK FARMER FARMERS FARMS FOOD INSECURITY FOOD POLICY FOOD PRICE GRAIN HOUSEHOLD HEAD HOUSEHOLD INCOME HUMAN CAPITAL INCOME GROWTH INCOME INEQUALITY INCOMES INNOVATIONS INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS LABOR SHORTAGE LABOR SUPPLY LABORERS LABOUR LABOUR MARKETS LAND ACQUISITION LAND DISTRIBUTION LAND REFORMS LAND SIZE LANDHOLDING SIZE MAJORITY OF FARMERS MULTIPLE EQUILIBRIA OUTPUTS POLITICAL ECONOMY PRODUCTION ACTIVITIES PRODUCTION COST PRODUCTION FUNCTION PRODUCTION METHODS PROPERTY RIGHTS REAL WAGES RENTS RICE PRODUCTION RURAL AREAS RURAL DEVELOPMENT SAFETY SCHOOLING SMALL FARMERS SMALL FARMS SMALL-SCALE FARMING SOIL QUALITY VILLAGE LEVEL WAGE EARNERS WAGE GROWTH WAGE INCREASES This paper uses farm panel data from Indonesia to examine dynamic patterns of land use, capital investments, and wages in agriculture. The empirical analysis shows that an increase in real wages has induced the substitution of labor by machines among relatively large farmers. Large farmers tend to increase the scale of operation by renting in more land when real wages increase. Machines and land are complementary if the scale of operation is greater than a threshold size. In contrast, such a dynamic change was not observed among relatively small holders, which implies a divergence in the movement of the production frontier between Java and off-Java regions given that the majority of small farmers are concentrated in Java. 2014-03-18T21:08:15Z 2014-03-18T21:08:15Z 2014-02 http://documents.worldbank.org/curated/en/2014/02/19154151/wage-growth-landholding-mechanization-agriculture-evidence-indonesia http://hdl.handle.net/10986/17324 English en_US Policy Research Working Paper;No. 6789 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Indonesia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRARIAN STRUCTURE AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL EMPLOYMENT AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURAL SECTORS AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURAL WORKERS AGRICULTURE ATTRITION AVERAGE WAGES CAPITAL INVESTMENTS CLIMATIC ZONES CROP CROP INCOME CROP YIELD CULTIVATED LAND CULTIVATION DAILY WAGE DEVELOPMENT ECONOMICS ECONOMIC GROWTH ECONOMICS EMPLOYMENT OPPORTUNITIES FAMILY LABOR FARM FARM EFFICIENCY FARM LABOR FARM LAND FARM PRODUCTION FARM PRODUCTIVITY FARM SIZE FARM WORK FARMER FARMERS FARMS FOOD INSECURITY FOOD POLICY FOOD PRICE GRAIN HOUSEHOLD HEAD HOUSEHOLD INCOME HUMAN CAPITAL INCOME GROWTH INCOME INEQUALITY INCOMES INNOVATIONS INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS LABOR SHORTAGE LABOR SUPPLY LABORERS LABOUR LABOUR MARKETS LAND ACQUISITION LAND DISTRIBUTION LAND REFORMS LAND SIZE LANDHOLDING SIZE MAJORITY OF FARMERS MULTIPLE EQUILIBRIA OUTPUTS POLITICAL ECONOMY PRODUCTION ACTIVITIES PRODUCTION COST PRODUCTION FUNCTION PRODUCTION METHODS PROPERTY RIGHTS REAL WAGES RENTS RICE PRODUCTION RURAL AREAS RURAL DEVELOPMENT SAFETY SCHOOLING SMALL FARMERS SMALL FARMS SMALL-SCALE FARMING SOIL QUALITY VILLAGE LEVEL WAGE EARNERS WAGE GROWTH WAGE INCREASES |
| spellingShingle |
AGRARIAN STRUCTURE AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL EMPLOYMENT AGRICULTURAL LAND AGRICULTURAL PRODUCTION AGRICULTURAL SECTORS AGRICULTURAL WAGE AGRICULTURAL WAGES AGRICULTURAL WORKERS AGRICULTURE ATTRITION AVERAGE WAGES CAPITAL INVESTMENTS CLIMATIC ZONES CROP CROP INCOME CROP YIELD CULTIVATED LAND CULTIVATION DAILY WAGE DEVELOPMENT ECONOMICS ECONOMIC GROWTH ECONOMICS EMPLOYMENT OPPORTUNITIES FAMILY LABOR FARM FARM EFFICIENCY FARM LABOR FARM LAND FARM PRODUCTION FARM PRODUCTIVITY FARM SIZE FARM WORK FARMER FARMERS FARMS FOOD INSECURITY FOOD POLICY FOOD PRICE GRAIN HOUSEHOLD HEAD HOUSEHOLD INCOME HUMAN CAPITAL INCOME GROWTH INCOME INEQUALITY INCOMES INNOVATIONS INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS LABOR SHORTAGE LABOR SUPPLY LABORERS LABOUR LABOUR MARKETS LAND ACQUISITION LAND DISTRIBUTION LAND REFORMS LAND SIZE LANDHOLDING SIZE MAJORITY OF FARMERS MULTIPLE EQUILIBRIA OUTPUTS POLITICAL ECONOMY PRODUCTION ACTIVITIES PRODUCTION COST PRODUCTION FUNCTION PRODUCTION METHODS PROPERTY RIGHTS REAL WAGES RENTS RICE PRODUCTION RURAL AREAS RURAL DEVELOPMENT SAFETY SCHOOLING SMALL FARMERS SMALL FARMS SMALL-SCALE FARMING SOIL QUALITY VILLAGE LEVEL WAGE EARNERS WAGE GROWTH WAGE INCREASES Yamauchi, Futoshi Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia |
| geographic_facet |
East Asia and Pacific Indonesia |
| relation |
Policy Research Working Paper;No. 6789 |
| description |
This paper uses farm panel data from
Indonesia to examine dynamic patterns of land use, capital
investments, and wages in agriculture. The empirical
analysis shows that an increase in real wages has induced
the substitution of labor by machines among relatively large
farmers. Large farmers tend to increase the scale of
operation by renting in more land when real wages increase.
Machines and land are complementary if the scale of
operation is greater than a threshold size. In contrast,
such a dynamic change was not observed among relatively
small holders, which implies a divergence in the movement of
the production frontier between Java and off-Java regions
given that the majority of small farmers are concentrated in Java. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Yamauchi, Futoshi |
| author_facet |
Yamauchi, Futoshi |
| author_sort |
Yamauchi, Futoshi |
| title |
Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia |
| title_short |
Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia |
| title_full |
Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia |
| title_fullStr |
Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia |
| title_full_unstemmed |
Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia |
| title_sort |
wage growth, landholding, and mechanization in agriculture : evidence from indonesia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/02/19154151/wage-growth-landholding-mechanization-agriculture-evidence-indonesia http://hdl.handle.net/10986/17324 |
| _version_ |
1764436875539382272 |