Wage Growth, Landholding, and Mechanization in Agriculture : Evidence from Indonesia

Yamauchi, Futoshi

World Bank, Washington, DC

关键词: AGRARIAN STRUCTURE;    AGRICULTURAL DEVELOPMENT;    AGRICULTURAL ECONOMICS;    AGRICULTURAL EMPLOYMENT;    AGRICULTURAL LAND;   

DOI  :  10.1596/1813-9450-6789
RP-ID  :  WPS6789

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses farm panel data fromIndonesia to examine dynamic patterns of land use, capitalinvestments, and wages in agriculture. The empiricalanalysis shows that an increase in real wages has inducedthe substitution of labor by machines among relatively largefarmers. Large farmers tend to increase the scale ofoperation by renting in more land when real wages increase.Machines and land are complementary if the scale ofoperation is greater than a threshold size. In contrast,such a dynamic change was not observed among relativelysmall holders, which implies a divergence in the movement ofthe production frontier between Java and off-Java regionsgiven that the majority of small farmers are concentrated in Java.