Population Density, Migration, and the Returns to Human Capital and Land: Insights from Indonesia

28 Pages Posted: 29 Jun 2013

See all articles by Yanyan Liu

Yanyan Liu

International Food Policy Research Institute (IFPRI)

Futoshi Yamauchi

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI)

Date Written: June 2013

Abstract

Rapid population growth in many developing countries has raised concerns regarding food security and household welfare. To understand the consequences of population growth on in the general equilibrium setting, we examine the dynamics of population density and its impacts on household outcomes using panel data from Indonesia. More specifically we explicitly highlight the importance of migration to urban sectors in the analysis. Empirical results show that human capital in the household determines the effect of increased population density on per capita household consumption expenditure. The effect of population density is positive if the average educational attainment is high (above junior high school), while it is negative otherwise. On the other hand, farmers with larger holdings maintain their advantage in farming regardless of population density. The paper concludes with some potential lessons for African countries from Indonesia’s more successful rural development experiences.

Keywords: Education, income growth, landholding, Migration, Population growth, Rural economy, Indonesia, Southeast Asia, Asia

Suggested Citation

Liu, Yanyan and Yamauchi, Futoshi, Population Density, Migration, and the Returns to Human Capital and Land: Insights from Indonesia (June 2013). IFPRI Discussion Paper No. 01271. Available at SSRN: https://ssrn.com/abstract=2286845 or http://dx.doi.org/10.2139/ssrn.2286845

Yanyan Liu (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Futoshi Yamauchi

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

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