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UNIVERSITAS INDONESIA
NON-FARM PARTICIPATION AND
HOUSEHOLD EDUCATIONAL
INVESTMENT: EVIDENCE IN
RURAL INDONESIA
TESIS
FAKULTAS EKONOMI DAN BISNIS
2023
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Tesis

Non-farm Participation and Household Educational Investment: Evidence in Rural Indonesia

Partisipasi Nonpertanian dan Investasi Pendidikan Rumah Tangga: Bukti di Perdesaan Indonesia

Dian Fitriana Arthati - ; Rus'an Nasrudin (Pembimbing/Promotor) - ; Thia Jasmina (Penguji) - ; Rizki Nauli Siregar (Penguji) - ;

Participating in nonfarm employment as a diversification strategy increases the probability of farm households becoming less vulnerable to income shocks and improves rural household welfare. This study aims to fill the research gap about the impact of nonfarm participation on rural household educational investment using nationally representative data for Indonesia. Using topographical characteristics in each district as the instrumental variable (IV), this study reveals that participating in nonfarm employment significantly contributes to enhancing household educational expenditure in rural farming households. Our baseline estimate suggests that households that diversify their income to nonfarm sectors have 0.11 percentage points increase in educational spending. Our instrumental variable estimates are considerably higher, 3.39 percentage points, suggesting that there is a negative bias in using OLS. There is considerable heterogeneity in the impacts of nonfarm participation across subsamples. The role of nonfarming is relatively higher in male-headed households and in households that run their own farm business assisted by temporary or unpaid workers. Nonfarm employment plays an essential role and is more prominent in eastern Indonesia. Income diversification to nonfarm sectors can potentially increase educational investment, particularly in relatively lagging regions, thereby reducing inequality in rural education.


Ketersediaan

Call NumberLocationAvailable
T 177/23PSB lt.2 - Karya Akhir1
PenerbitDepok: Program Studi Pascasarjana Ilmu Ekonomi Fakultas Ekonomi dan Bisnis UI 2023
Edisi-
SubjekIncome diversification
Instrumental variable
Nonfarm
Household educational expenditure
ISBN/ISSN-
KlasifikasiNONE
Deskripsi Fisikix, 39 p. ; 30 cm
Info Detail SpesifikTesis
Other Version/RelatedTidak tersedia versi lain
Lampiran BerkasTidak Ada Data

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