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Pandemic‐induced De‐urbanization in Indonesia: Urban and Rural Impacts.

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Název: Pandemic‐induced De‐urbanization in Indonesia: Urban and Rural Impacts.
Autoři: Warr, Peter, Yusuf, Arief Anshory
Zdroj: Developing Economies; Jun2024, Vol. 62 Issue 2, p139-174, 36p
Témata: REAL wages, UNSKILLED labor, ECONOMIC competition, AGRICULTURAL laborers, LABOR market, COMPUTABLE general equilibrium models, LABOR demand
Geografický termín: INDONESIA
Abstrakt: In Indonesia, the negative health impact of COVID‐19 and the initial, direct loss of employment have been largest in urban, not rural areas. But the second‐round effects on labor markets have been very different. They have included a huge, empirically documented migration of newly unemployed urban workers from urban to rural areas, in urgent search of employment, food, and safety from the pandemic. We call this "de‐urbanization." It placed the migrating workers in economic competition with the least skilled agricultural workers, expanding their numbers by almost 8%. By increasing the supply of unskilled farm labor, de‐urbanization depressed farm workers' real wages. Because the demand for farm labor is inelastic, the total wage income of these workers, aggregated across all unskilled farm laborers, declined. The households relying on this source of income are by far Indonesia's poorest. Similar outcomes may occur in other pandemic‐affected developing countries with large agricultural sectors. [ABSTRACT FROM AUTHOR]
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Databáze: Complementary Index
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Abstrakt:In Indonesia, the negative health impact of COVID‐19 and the initial, direct loss of employment have been largest in urban, not rural areas. But the second‐round effects on labor markets have been very different. They have included a huge, empirically documented migration of newly unemployed urban workers from urban to rural areas, in urgent search of employment, food, and safety from the pandemic. We call this "de‐urbanization." It placed the migrating workers in economic competition with the least skilled agricultural workers, expanding their numbers by almost 8%. By increasing the supply of unskilled farm labor, de‐urbanization depressed farm workers' real wages. Because the demand for farm labor is inelastic, the total wage income of these workers, aggregated across all unskilled farm laborers, declined. The households relying on this source of income are by far Indonesia's poorest. Similar outcomes may occur in other pandemic‐affected developing countries with large agricultural sectors. [ABSTRACT FROM AUTHOR]
ISSN:00121533
DOI:10.1111/deve.12392