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. 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.
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| Format: | Journal Article biblioteca |
| Language: | en_US |
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Taylor and Francis
2016-03-30
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| Subjects: | transportation speed, labor markets, schooling, roads, |
| Online Access: | http://hdl.handle.net/10986/24175 |
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dig-okr-10986241752023-04-03T10:12:55Z 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 Article de journal Artículo de revista The Journal of Development Studies 0022-0388 http://hdl.handle.net/10986/24175 en_US CC BY-NC-ND 3.0 IGO World Bank http://creativecommons.org/licenses/by-nc-nd/3.0/igo application/pdf Taylor and Francis |
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Banco Mundial |
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Bibliográfico |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
| language |
en_US |
| topic |
transportation speed labor markets schooling roads transportation speed labor markets schooling roads |
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transportation speed labor markets schooling roads transportation speed labor markets schooling roads Yamauchi, Futoshi The Effects of Improved Roads on Wages and Employment Evidence from Rural Labor Markets in 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 |
| topic_facet |
transportation speed labor markets schooling roads |
| 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 |
2016-03-30 |
| url |
http://hdl.handle.net/10986/24175 |
| work_keys_str_mv |
AT yamauchifutoshi theeffectsofimprovedroadsonwagesandemploymentevidencefromrurallabormarketsinindonesia AT yamauchifutoshi effectsofimprovedroadsonwagesandemploymentevidencefromrurallabormarketsinindonesia |
| _version_ |
1767603803545141248 |