Human capital and structural transformation: Quasi-experimental evidence from Indonesia

This paper provides quasi-experimental evidence on the long-term causal effect of increases in human capital on participation in agriculture. We use variation in male educational attainment generated by Indonesia’s Sekolah Dasar INPRES program, one of the largest ever school building programs. Consi...

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Autores principales: Karachiwalla, Naureen, Palloni, Giordano
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2019
Materias:
Acceso en línea:https://hdl.handle.net/10568/147154
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author Karachiwalla, Naureen
Palloni, Giordano
author_browse Karachiwalla, Naureen
Palloni, Giordano
author_facet Karachiwalla, Naureen
Palloni, Giordano
author_sort Karachiwalla, Naureen
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper provides quasi-experimental evidence on the long-term causal effect of increases in human capital on participation in agriculture. We use variation in male educational attainment generated by Indonesia’s Sekolah Dasar INPRES program, one of the largest ever school building programs. Consistent with the first evaluation [Duflo, 2001], we find that males exposed to a higher program intensity have improved measures of human capital as adults. We then show that treated cohorts are more likely to be employed outside of agriculture–particularly in industry–and less likely to be agricultural workers. Then, exploiting variation in exposure across adjacent districts, we demonstrate that higher INPRES intensity in neighboring districts decreases non-agricultural employment and earnings, consistent with cross-district spillovers mediating the total impacts. Together, the results suggest that government investment in human capital can have profound effects on the rural economy and may help to accelerate shifts away from agriculture.
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spelling CGSpace1471542025-11-06T06:21:04Z Human capital and structural transformation: Quasi-experimental evidence from Indonesia Karachiwalla, Naureen Palloni, Giordano human capital education agricultural production agricultural transformation workforce remuneration agricultural workers This paper provides quasi-experimental evidence on the long-term causal effect of increases in human capital on participation in agriculture. We use variation in male educational attainment generated by Indonesia’s Sekolah Dasar INPRES program, one of the largest ever school building programs. Consistent with the first evaluation [Duflo, 2001], we find that males exposed to a higher program intensity have improved measures of human capital as adults. We then show that treated cohorts are more likely to be employed outside of agriculture–particularly in industry–and less likely to be agricultural workers. Then, exploiting variation in exposure across adjacent districts, we demonstrate that higher INPRES intensity in neighboring districts decreases non-agricultural employment and earnings, consistent with cross-district spillovers mediating the total impacts. Together, the results suggest that government investment in human capital can have profound effects on the rural economy and may help to accelerate shifts away from agriculture. 2019-05-09 2024-06-21T09:11:38Z 2024-06-21T09:11:38Z Working Paper https://hdl.handle.net/10568/147154 en Open Access application/pdf International Food Policy Research Institute Karachiwalla, Naureen; and Palloni, Giordano. 2019. Human capital and structural transformation: Quasi-experimental evidence from Indonesia. IFPRI Discussion Paper 1836. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147154
spellingShingle human capital
education
agricultural production
agricultural transformation
workforce
remuneration
agricultural workers
Karachiwalla, Naureen
Palloni, Giordano
Human capital and structural transformation: Quasi-experimental evidence from Indonesia
title Human capital and structural transformation: Quasi-experimental evidence from Indonesia
title_full Human capital and structural transformation: Quasi-experimental evidence from Indonesia
title_fullStr Human capital and structural transformation: Quasi-experimental evidence from Indonesia
title_full_unstemmed Human capital and structural transformation: Quasi-experimental evidence from Indonesia
title_short Human capital and structural transformation: Quasi-experimental evidence from Indonesia
title_sort human capital and structural transformation quasi experimental evidence from indonesia
topic human capital
education
agricultural production
agricultural transformation
workforce
remuneration
agricultural workers
url https://hdl.handle.net/10568/147154
work_keys_str_mv AT karachiwallanaureen humancapitalandstructuraltransformationquasiexperimentalevidencefromindonesia
AT pallonigiordano humancapitalandstructuraltransformationquasiexperimentalevidencefromindonesia