TY - JOUR
T1 - Skill transferability, migration, and development
T2 - Evidence from population resettlement in Indonesia
AU - Bazzi, Samuel
AU - Gaduh, Arya
AU - Rothenberg, Alexander D.
AU - Wong, Maisy
PY - 2016/9
Y1 - 2016/9
N2 - We use a natural experiment in Indonesia to provide causal evidence on the role of location-specific human capital and skill transferability in shaping the spatial distribution of productivity. From 1979-1988, the Transmigration Program relocated two million migrants from rural Java and Bali to new rural settlements in the Outer Islands. Villages assigned migrants from regions with more similar agroclimatic endowments exhibit higher rice productivity and nighttime light intensity one to two decades later. We find some evidence of migrants' adaptation to agroclimatic change. Overall, our results suggest that regional productivity differences may overstate the potential gains from migration. (JEL J24, J43, J61, O13, O15, Q13, R23).
AB - We use a natural experiment in Indonesia to provide causal evidence on the role of location-specific human capital and skill transferability in shaping the spatial distribution of productivity. From 1979-1988, the Transmigration Program relocated two million migrants from rural Java and Bali to new rural settlements in the Outer Islands. Villages assigned migrants from regions with more similar agroclimatic endowments exhibit higher rice productivity and nighttime light intensity one to two decades later. We find some evidence of migrants' adaptation to agroclimatic change. Overall, our results suggest that regional productivity differences may overstate the potential gains from migration. (JEL J24, J43, J61, O13, O15, Q13, R23).
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U2 - 10.1257/aer.20141781
DO - 10.1257/aer.20141781
M3 - Article
AN - SCOPUS:84989199323
SN - 0002-8282
VL - 106
SP - 2658
EP - 2698
JO - American Economic Review
JF - American Economic Review
IS - 9
ER -