Roads, Labor Markets, and Human Capital : Evidence from Rural Indonesia

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.

Bibliographic Details

Main Author:	Yamauchi, Futoshi
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-12
Subjects:	ALLOCATIVE EFFICIENCY, ASPHALT, ASPHALT ROADS, AVERAGE SPEED, CAPITAL INVESTMENTS, CAR, CITIES, COMMUTING, DEVELOPMENT ECONOMICS, DISTRICTS, DIVISION OF LABOR, DRIVING, ECONOMIC DEVELOPMENT, EMPLOYMENT, EMPLOYMENT OPPORTUNITIES, EQUATIONS, FINANCIAL INSTITUTIONS, GENDER, HOUSEHOLDS, HUMAN CAPITAL, INCOME, INFRASTRUCTURE PROJECTS, INFRASTRUCTURES, INTERNATIONAL ROUGHNESS INDEX, LABOR DEMAND, LABOR MARKET, LABOR MARKETS, LABOR SUPPLY, MARKET WAGES, MOBILITY, MODE OF TRANSPORTATION, POLITICAL ECONOMY, PRICE CHANGES, RESOURCE ALLOCATION, ROAD, ROAD CONDITIONS, ROAD CONSTRUCTION, ROAD IMPROVEMENT, ROAD IMPROVEMENTS, ROAD INFRASTRUCTURE, ROAD NETWORKS, ROAD PROJECTS, ROAD QUALITY, ROADS, ROUGHNESS, RURAL AREAS, RURAL DEVELOPMENT, RURAL LABOR, RURAL ROAD CONSTRUCTION, RURAL ROADS, SKILLED LABOR, SPAN, SPEED, SPEEDS, TRANSPORT, TRANSPORT COSTS, TRANSPORTATION, TRANSPORTATION NETWORKS, TRAVEL TIME, URBAN AREAS, VILLAGE LEVEL, VILLAGE ROADS, VILLAGES, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2014/12/23032932/roads-labor-markets-human-capital-evidence-rural-indonesia https://hdl.handle.net/10986/21133
Tags:	Add Tag No Tags, Be the first to tag this record!