NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Aggregate Productivity Effects of Internal Migration: Evidence from Indonesia

Gharad Bryan, Melanie Morten

NBER Working Paper No. 23540
Issued in June 2017
NBER Program(s):Development Economics

We estimate the aggregate productivity gains from reducing barriers to internal labor migration in Indonesia, accounting for worker selection and spatial differences in human capital. We distinguish between movement costs, which mean workers will only move if they expect higher wages, and amenity differences, which mean some locations must pay more to attract workers. We find modest but important aggregate impacts. We estimate a 22% increase in labor productivity from removing all barriers. Reducing migration costs to the US level, a high mobility benchmark, leads to an 8% productivity boost. These figures hides substantial heterogeneity. The origin population that benefits most sees an 104% increase in average earnings from a complete barrier removal, or a 37% increase from moving to the US benchmark.

download in pdf format
   (18139 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23540

Users who downloaded this paper also downloaded* these:
Jardim, Long, Plotnick, van Inwegen, Vigdor, and Wething w23532 Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
Hicks, Kleemans, Li, and Miguel w23253 Reevaluating Agricultural Productivity Gaps with Longitudinal Microdata
Morten w22159 Temporary Migration and Endogenous Risk Sharing in Village India
Morten and Oliveira w22158 Paving the Way to Development: Costly Migration and Labor Market Integration
Lucas w23547 What Was the Industrial Revolution?
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us