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Labor Displacement in Agriculture: Evidence from Oil Palm Expansion in Indonesia

Author

Listed:
  • Christoph Kubitza
  • Vijesh V. Krishna
  • Stephan Klasen
  • Thomas Kopp
  • Nunung Nuryartono
  • Matin Qaim

Abstract

We analyze the labor market effects of oil palm cultivation among smallholder farmers in Indonesia. Oil palm requires less labor per unit of land than alternative crops, especially less female labor. Microlevel data and nationally representative regency-level data show that oil palm adoption, on average, led to an expansion of total cropland at the expense of forestland, resulting in higher agricultural labor demand for men. At the same time, women’s employment rates declined due to a substantial decrease in agricultural family labor, which was most evident in regions with high initial land scarcity and thus limited options for cropland expansion.

Suggested Citation

  • Christoph Kubitza & Vijesh V. Krishna & Stephan Klasen & Thomas Kopp & Nunung Nuryartono & Matin Qaim, 2024. "Labor Displacement in Agriculture: Evidence from Oil Palm Expansion in Indonesia," Land Economics, University of Wisconsin Press, vol. 100(3), pages 547-567.
    • Handle: RePEc:uwp:landec:v:100:y:2024:i:3:p:547-567
    Note: DOI: https://doi.org/10.3368/le.100.3.122122-0109R1
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    References listed on IDEAS

    as
    1. Nelson B Villoria, 2019. "Technology Spillovers and Land Use Change: Empirical Evidence from Global Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(3), pages 870-893.
    2. Stephan Klasen & Jan Priebe & Robert Rudolf, 2013. "Cash crop choice and income dynamics in rural areas: evidence for post-crisis Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 44(3), pages 349-364, May.
    3. T.I. Bouwman & J.A. Andersson & K.E. Giller, 2021. "Herbicide Induced Hunger? Conservation Agriculture, Ganyu Labour and Rural Poverty in Central Malawi," Journal of Development Studies, Taylor & Francis Journals, vol. 57(2), pages 244-263, February.
    4. Robert Evenson & Prabhu Pingali (ed.), 2007. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 3, number 1.
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    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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