Skill transferability, migration, and development: Evidence from population resettlement in Indonesia

Samuel Bazzi, Arya Gaduh, Alexander D. Rothenberg, Maisy Wong

Research output: Contribution to journalArticle

23 Scopus citations

Abstract

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).

Original languageEnglish (US)
Pages (from-to)2658-2698
Number of pages41
JournalAmerican Economic Review
Volume106
Issue number9
DOIs
StatePublished - Sep 2016
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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