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Internet Use in Agriculture and Farm Earnings: An Analysis of the Indonesia Labor Force Survey

Author

Listed:
  • WENI LIDYA SUKMA

    (Directorate of Demographic and Labor Statistics, Statistics Indonesia, Jakarta, Indonesia)

  • MARDIANA DWI PUSPITASARI

    (Research Center for Population, National Research and Innovation Agency, Jakarta, Indonesia)

  • PUGUH PRASETYOPUTRA

    (Research Center for Population, National Research and Innovation Agency, Jakarta, Indonesia)

Abstract

The diffusion and adoption of the internet are necessary for farmers’ economic development, including in Indonesia where agriculture continues to employ most of the labor force. However, Indonesian farmers’ terms of trade for food crops remain low. This study examines the association between internet use in agriculture and farm earnings in Indonesia. We analyze data on the agriculture sector and three subsectors (food crops, horticulture, and livestock) from the August 2022 Indonesia National Labor Force Survey. We apply the Heckman selection model with maximum likelihood estimation to the data. We find that self-employed farmers who use the internet have 29.6% more farm earnings than those who do not. This association varies across subsectors, with internet use in the food crops and livestock subsectors associated with the lowest and highest percentage increases in farm earnings, respectively. Moreover, internet infrastructure development is low in eastern Indonesia. Therefore, addressing this issue may increase internet use and help raise farm earnings in that part of the country.

Suggested Citation

  • Weni Lidya Sukma & Mardiana Dwi Puspitasari & Puguh Prasetyoputra, 2025. "Internet Use in Agriculture and Farm Earnings: An Analysis of the Indonesia Labor Force Survey," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 42(01), pages 233-257.
    • Handle: RePEc:wsi:adrxxx:v:42:y:2025:i:01:n:s0116110525500027
    DOI: 10.1142/S0116110525500027
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    Keywords

    digital divide; farm earnings; food crops; Heckman selection model; internet use;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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