The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia

The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia

This paper examines the impact of road quality on labour supply and wages using household panel data from rural Indonesia. The analysis uses fixed-effect instrumental variable estimation by first differencing two-round panel data. First, road projects are found to increase the transportation speed....

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Bibliographic Details
Main Author: Yamauchi, Futoshi
Format: Journal Article
Language:en_US
Published: Taylor and Francis 2016
Subjects:
transportation speed
labor markets
schooling
roads
Online Access:http://hdl.handle.net/10986/24175
id okr-10986-24175
recordtype oai_dc
spelling okr-10986-241752021-05-26T09:05:19Z The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia Yamauchi, Futoshi transportation speed labor markets schooling roads This paper examines the impact of road quality on labour supply and wages using household panel data from rural Indonesia. The analysis uses fixed-effect instrumental variable estimation by first differencing two-round panel data. First, road projects are found to increase the transportation speed. Second, the empirical results from intra-village variations of household endowments and labour-market behaviour show that an increase in transportation speed raised wages in both non-agricultural and agricultural employment, and was associated with a decline in working time in agricultural employment, for the households whose members are relatively educated. The findings support potential complementarity between road quality and education, implying that the government’s public investments in roads and education should be coordinated to capture cross-augmenting positive impacts in the long run. 2016-04-28T21:47:20Z 2016-04-28T21:47:20Z 2016-03-30 Journal Article The Journal of Development Studies 0022-0388 http://hdl.handle.net/10986/24175 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research Indonesia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic transportation speed
labor markets
schooling
roads
spellingShingle transportation speed
labor markets
schooling
roads
Yamauchi, Futoshi
The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia
geographic_facet Indonesia
description This paper examines the impact of road quality on labour supply and wages using household panel data from rural Indonesia. The analysis uses fixed-effect instrumental variable estimation by first differencing two-round panel data. First, road projects are found to increase the transportation speed. Second, the empirical results from intra-village variations of household endowments and labour-market behaviour show that an increase in transportation speed raised wages in both non-agricultural and agricultural employment, and was associated with a decline in working time in agricultural employment, for the households whose members are relatively educated. The findings support potential complementarity between road quality and education, implying that the government’s public investments in roads and education should be coordinated to capture cross-augmenting positive impacts in the long run.
format Journal Article
author Yamauchi, Futoshi
author_facet Yamauchi, Futoshi
author_sort Yamauchi, Futoshi
title The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia
title_short The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia
title_full The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia
title_fullStr The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia
title_full_unstemmed The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in Indonesia
title_sort effects of improved roads on wages and employment evidence from rural labor markets in indonesia
publisher Taylor and Francis
publishDate 2016
url http://hdl.handle.net/10986/24175
_version_ 1764455847114571776

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