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...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2015
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/12/23032932/roads-labor-markets-human-capital-evidence-rural-indonesia http://hdl.handle.net/10986/21133 |
| Summary: | 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. |
|---|