Labour Absorption in Indonesian Agriculture

Abey, Arun; Booth, Anne; Sundrum, Raman

doi:10.1080/00074918112331333919

Cited by 12 publications

(4 citation statements)

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“…This hypothesis is supported by evidence on the absorption of family labour on the farm in the absence of opportunities to earn the usual wages as hired labour, even if the marginal contribution would be zero [1].…”

Section: Effects On Labour Employmentsupporting

confidence: 52%

Farmers participation and socio-economic effects of a watershed management programme in Central Java (Solo river basin, Wiroko watershed)

Daru

Tips

1985

Agroforest Syst

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A self-help watershed management project in the densely populated areas of Central Java, Indonesia, is discussed in terms of its achievements to combine activities to improve the physical, the social and the economic environment. Without simultaneous, weU-planned action on these three essential components the project's improvements cannot be sustained by the farmers. It was found that activities such as tree planting and maintenance, construction of soil erosion control structures and training in agroforestry-type intensification techniques for land cultivation serve as a focus to induce farmers to participate. Participation can be sustained in spite of initial decreasing net income if increases in land productivity based on agroforestry practices together with appropriate training programmes organize and motivate the farmers. In future watershed management programmes more emphasis may be placed on the rural development planning aspects of e.g. agroforestry techniques, and on rural community organization.

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Section: Effects On Labour Employmentsupporting

confidence: 52%

Farmers participation and socio-economic effects of a watershed management programme in Central Java (Solo river basin, Wiroko watershed)

Daru

Tips

1985

Agroforest Syst

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“…Abey, Booth, et al (1981), Lluch and Mazumdar (1985), and Hart (1986) assert that slack season conditions and underemployment are the predominant features of rural labor markets. Nor is this evidence in favor of separation.…”

Section: Description Of Datamentioning

confidence: 99%

Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models

Benjamin¹

1992

Econometrica

455

327

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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. The Econometric Society is collaborating with JSTOR to digitize, preserve and extend access to Econometrica.Complete and competitive markets imply a separation of the consumption (labor supply) and production (labor demand) decisions of the farm household. This paper tests for separation using the observation that in the absence of labor markets, household composition is an important determinant of farm labor use. The test has power when off-farm employment or hiring constraints, or differing efficiencies of family and hired labor lead to demographic variables affecting farm labor demand. An empirical model is developed to test the proposition that household labor demand (farm employment) is independent of family composition. The model is estimated on a household-farm data set from rural Java. Measurement error and endogeneity issues are addressed with instrumental variables techniques. I cannot reject the null hypothesis that farm labor allocation decisions are independent of household structure. The results are robust to different specifications of the labor demand function.

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“…This sector develops along with the increasing number of skilled population, both in urban and rural areas. In addition, with the decreased labour absorption capacity of subsistence agriculture (Abey, Booth & Sundrum, 1981) and the scarcity of land for agriculture, it is necessary that non-farm businesses, especially in rural areas be promoted.…”

Section: Introductionmentioning

confidence: 99%

“…One of the main advantages non-farm sector of activities is risk diversification (Barrett, Reardon & Webb, 2001) and additional sources of income given that wage employment in this sector is able to contribute around 30-50% to rural household income (Reardon, 1997;DOI: 10.17933/bpostel.2020.180103 Berdegue, Reardon, & Escobar, 2001;Escobal, 2001;Lanjouw & Lanjouw, 2001). Abey, Booth, and Sundrum (1981) found that the main reason for the growth of the rural non-farm sector economic activities was the low absorption of labor in the agricultural sector. The diversification of businesses into this sector (see figure 1) shows that the non-farm business sector is increasingly needed to support job creation, especially in rural areas.…”

Section: Introductionmentioning

confidence: 99%

The Role of Mobile Phone and Internet Use in the Performance of Rural Non-Farm Enterprises: An Analysis of Indonesian Rural Households

Rahayu

Riyanto

2020

bul. pos. dan telekomun.

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Rural non-farm enterprises have an increasingly important role in economic development in developing countries. The performance of rural non-farm enterprisess is expected to continue to improve in line with the use of telecommunications technology in their business. Such improvement resulted from the use of communication technologies such as mobile phones and internet that are able to reduce information search and expand market information. This study analyzes the role of mobile phone and internet use in the performance of rural non-farm enterprises. By using household-level data from the Fifth Wave of the Indonesian family life survey (IFLS 5) in 2014 and applying the propensity score matching method, the study found that the use of mobile phones and the internet has a positive impact on the performance of rural non-farm household enterprisess. It shows that the telecommunications infrastructure development policy in rural areas is able to provide economic improvement for rural households.

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Labour Absorption in Indonesian Agriculture

Cited by 12 publications

References 0 publications

Farmers participation and socio-economic effects of a watershed management programme in Central Java (Solo river basin, Wiroko watershed)

Farmers participation and socio-economic effects of a watershed management programme in Central Java (Solo river basin, Wiroko watershed)

Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models

The Role of Mobile Phone and Internet Use in the Performance of Rural Non-Farm Enterprises: An Analysis of Indonesian Rural Households

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