RT Journal Article
SR Electronic
T1 Agricultural Productivity and Fertility Rates: Evidence from the Oil Palm Boom in Indonesia
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0520-10905R1
DO 10.3368/jhr.0520-10905R1
A1 Gehrke, Esther
A1 Kubitza, Christoph
YR 2021
UL http://jhr.uwpress.org/content/early/2021/12/03/jhr.0520-10905R1.abstract
AB We analyze the link between agricultural productivity growth and fertility rates, using the oil palm boom in Indonesia as an empirical setting. We find consistent negative effects of oil palm expansion on fertility during the period 1996-2016. This finding appears to be linked to rising farm profits that led to consumption growth, an expansion of the non-agricultural sector, increasing wage returns to education and higher school enrollment. Together, these findings suggest that agricultural productivity growth can play an important role in accelerating the fertility transition, as long as the economic benefits are large enough to translate into local economic development.