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Intersectoral Migration in Southeast Asia: Evidence from Indonesia, Thailand, and the Philippines

24 Pages Posted: 20 Apr 2016  

Rita Butzer

University of Chicago - Department of Economics

Yair Mundlak

Hebrew University of Jerusalem - Department of Agricultural Economics and Management

Donald F. Larson

Institute for the Theory and Practice of International Relations

Date Written: January 2003

Abstract

Using time series data spanning three decades, Butzer, Mundlak, and Larson examine the determinants of sectoral migration in Indonesia, Thailand and the Philippines. They employ a principal components algorithm to address problems associated with trended and intercorrelated explanatory variables. Migration rates in the three countries are low relative to other developing countries with the consequence of persistent intersectoral income differentials. Even so, the rate of migration has been responsive to income ratios in each country. The migration rates were also affected by the absorbing capacity of nonagriculture, as indicated by several measures. In contrast to other studies, policy variables consisting of indicators of physical and human capital had little impact on the migration rate separate from that captured by relative incomes.

This paper - a product of Rural Development, Development Research Group - is part of a larger effort in the group to assess the role of the rural sector in economic growth. The study was partially funded by the Research Support Budget under the research project "Dynamism of Rural Sector Growth" (RPO 683-06).

Suggested Citation

Butzer, Rita and Mundlak, Yair and Larson, Donald F., Intersectoral Migration in Southeast Asia: Evidence from Indonesia, Thailand, and the Philippines (January 2003). World Bank Policy Research Working Paper No. 2949. Available at SSRN: https://ssrn.com/abstract=636311

Rita Christine Butzer (Contact Author)

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

Yair Mundlak

Hebrew University of Jerusalem - Department of Agricultural Economics and Management ( email )

P.O. Box 12
Rehovot, 76100
Israel

Donald F. Larson

Institute for the Theory and Practice of International Relations ( email )

P.O. Box 8795
Williamsburg, VA 23185
United States

HOME PAGE: http://https://sites.google.com/site/decrgdonaldflarson/

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