Details

Autor(en) / Beteiligte

• Bryan, Gharad
• Morten, Melanie

Titel

The Aggregate Productivity Effects of Internal Migration: Evidence from Indonesia

Ist Teil von

• The Journal of political economy, 2019-10, Vol.127 (5), p.2229-2268

Ort / Verlag

Chicago: The University of Chicago Press

Erscheinungsjahr

2019

Quelle

Access via Business Source (EBSCOhost)

Beschreibungen/Notizen

• 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 move only 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 percent increase in labor productivity from removing all barriers. Reducing migration costs to the US level, a high-mobility benchmark, leads to a 7.1 percent productivity boost. These figures hide substantial heterogeneity. The origin population that benefits most sees a 104 percent increase in average earnings from a complete barrier removal, or a 25 percent gain from moving to the US benchmark.