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

References

1. ↵
   1. Adu-Baffour, F.,
   2. T. Daum, and
   3. R. Birner

   . 2019. “Can Small Farms Benefit from Big Companies’ Initiatives to Promote Mechanization in Africa? A Case Study from Zambia.” Food Policy 84: 133–45. https://doi.org/10.1016/j.foodpol.2019.03.007.

   OpenUrl
2. ↵
   1. Austin, K. G.,
   2. A. Mosnier,
   3. J. Pirker,
   4. I. McCallum,
   5. S. Fritz, and
   6. P. S. Kasibhatla

   . 2017. “Shifting Patterns of Oil Palm Driven Deforestation in Indonesia and Implications for Zero-Deforestation Commitments.” Land Use Policy 69: 41–48. https://doi.org/10.1016/j.landusepol.2017.08.036.

   OpenUrl
3. ↵
   1. Austin, K. G.,
   2. A. Schwantes,
   3. Y. Gu, and
   4. P. S. Kasibhatla

   . 2019. “What Causes Deforestation in Indonesia?” Environmental Research Letters 14: 024007. https://doi.org/10.1088/1748-9326/aaf6db.

   OpenUrl
4. ↵
   1. Benedict, J. J.,
   2. K. M. Carlson,
   3. R. Febrian, and
   4. R. Heilmayr

   . 2023. “Characteristics of Indonesian Palm Oil Mills.” Available at https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/SMPITC&widget=dataverse@harvard.
5. ↵
   1. Benin, S.

   2015. “Impact of Ghana’s Agricultural Mechanization Services Center Program.” Agricultural Economics 46 (S1): 103–17. https://doi.org/10.1111/agec.12201.

   OpenUrl
6. ↵
   1. Bou Dib, J.,
   2. V. V. Krishna,
   3. Z. Alamsyah, and
   4. M. Qaim

   . 2018. “Land-Use Change and Livelihoods of Non-farm Households: The Role of Income from Employment in Oil Palm and Rubber in Rural Indonesia.” Land Use Policy 76: 828–38. https://doi.org/10.1016/j.landusepol.2018.03.020.

   OpenUrl
7. ↵
   1. Bouwman, T. I.,
   2. J. A. Andersson, and
   3. K. E. Giller

   . 2021. “Herbicide Induced Hunger? Conservation Agriculture, Ganyu Labour and Rural Poverty in Central Malawi.” Journal of Development Studies 57 (2): 244–63. https://doi.org/10.1080/00220388.2020.1786062.

   OpenUrl
8. ↵
   1. Bustos, P.,
   2. B. Caprettini, and
   3. J. Ponticelli

   . 2016. “Agricultural Productivity and Structural Transformation: Evidence from Brazil.” American Economic Review 106 (6): 1320–65. https://doi.org/10.1257/aer.20131061.

   OpenUrl
9. ↵
   1. Butler, R. A., and
   2. W. F. Laurance

   . 2009. “Is Oil Palm the Next Emerging Threat to the Amazon?” Tropical Conservation Science 2 (1): 1–10.

   OpenUrlCrossRef
10. ↵
    1. Byerlee, D.,
    2. W. P. Falcon, and
    3. R. Naylor

    . 2017. The Tropical Oil Crop Revolution: Food, Feed, Fuel, and Forests. Oxford, UK: Oxford University Press.
11. ↵
    1. Carlson, K. M.,
    2. R. Heilmayr,
    3. H. K. Gibbs,
    4. P. Noojipady,
    5. D. N. Burns,
    6. D. C. Morton,
    7. N. F. Walker,
    8. G. D. Paoli, and
    9. C. Kremen

    . 2018. “Effect of Oil Palm Sustainability Certification on Deforestation and Fire in Indonesia.” Proceedings of the National Academy of Sciences 115 (1): 121–26. https://doi.org/10.1073/pnas.1704728114.

    OpenUrlAbstract/FREE Full Text
12. ↵
    1. Caunedo, J., and
    2. N. Kala

    . 2021. “Mechanizing Agriculture.” Working Paper 29061. Cambridge, MA: National Bureau of Economic Research. https://doi.org/10.3386/w29061.
13. ↵
    1. Chrisendo, D.,
    2. V. V. Krishna,
    3. H. Siregar, and
    4. M. Qaim

    . 2020. “Land-Use Change, Nutrition, and Gender Roles in Indonesian Farm Households.” Forest Policy and Economics 118: 102245. https://doi.org/10.1016/j.forpol.2020.102245.

    OpenUrl
14. ↵
    1. Chrisendo, D.,
    2. H. Siregar, and
    3. M. Qaim

    . 2021. “Oil Palm and Structural Transformation of Agriculture in Indonesia.” Agricultural Economics 52 (5): 849–62. https://doi.org/10.1111/agec.12658.

    OpenUrl
15. ↵
    1. Chrisendo, D.,
    2. H. Siregar, and
    3. M. Qaim

    . 2022. “Oil Palm Cultivation Improves Living Standards and Human Capital Formation in Smallholder Farm Households.” World Development 159: 106034. https://doi.org/10.1016/j.worlddev.2022.106034.

    OpenUrl
16. ↵
    1. Christiaensen, L., and
    2. W. Martin

    . 2018. “Agriculture, Structural Transformation and Poverty Reduction: Eight New Insights.” World Development 109: 413–16. https://doi.org/10.1016/j.worlddev.2018.05.027.

    OpenUrl
17. ↵
    1. Clark, C.

    1940. The Conditions of Economic Progress. London: Macmillan.
18. ↵
    1. Colella, F.,
    2. R. Lalive,
    3. S. O. Sakalli, and
    4. M. Thoenig

    . 2019. “Inference with Arbitrary Clustering.” Discussion Paper 12584. Bonn, Germany: IZA Institute for Labor Economics.
19. ↵
    1. Collier, P., and
    2. S. Dercon

    . 2014. “African Agriculture in 50 Years: Smallholders in a Rapidly Changing World?” World Development 63: 92–101. https://doi.org/10.1016/j.worlddev.2013.10.001.

    OpenUrl
20. ↵
    1. Cramb, R., and
    2. G. N. Curry

    . 2012. “Oil Palm and Rural Livelihoods in the Asia-Pacific Region: An Overview.” Asia Pacific Viewpoint 53 (3): 223–39. https://doi.org/10.1111/j.1467-8373.2012.01495.x.

    OpenUrl
21. ↵
    1. Cramb, R., and
    2. J. F. McCarthy

    , eds. 2016. The Oil Palm Complex: Smallholders, Agribusiness, and the State in Indonesia and Malaysia. Singapore: NUS Press.
22. ↵
    1. Edwards, R. B.

    2019a. “Export Agriculture and Rural Poverty: Evidence from Indonesian Palm Oil.” Working paper. Dartmouth College, Hanover, New Hampshire. Available at https://static1.squarespace.com/static/57d5edcf197aea51693538dc/t/5c6cbb1aa4222f75067de956/1550629671736/eard_v9_1901-merged.pdf.
23. ↵
    1. Edwards, R. B.

    2019b. “Spillovers from Agricultural Processing.” Working paper. Dartmouth College, Hanover, New Hampshire. Available at https://farmlabor.ucdavis.edu/sites/g/files/dgvnsk5936/files/inline-files/Ryan%20Edwards%3B%20Ag%20Spillovers.pdf.
24. ↵
    1. Emerick, K.

    2018. “Agricultural Productivity and the Sectoral Reallocation of Labor in Rural India.” Journal of Development Economics 135: 488–503. https://doi.org/10.1016/j.jdeveco.2018.08.013.

    OpenUrl
25. ↵
    1. Euler, M.,
    2. V. V. Krishna,
    3. S. Schwarze,
    4. H. Siregar, and
    5. M. Qaim

    . 2017. “Oil Palm Adoption, Household Welfare, and Nutrition among Smallholder Farmers in Indonesia.” World Development 93: 219–35. https://doi.org/10.1016/j.worlddev.2016.12.019.

    OpenUrl
26. ↵
    FAO (Food and Agriculture Organization). 2023. “Global Agro Ecological Zones.” Available at http://www.fao.org/gaez/.
27. ↵
    FAOSTAT (Food and Agriculture Organization Statistics). 2018. “Production: Harvested Area.” Available at http://faostat3.fao.org.
28. ↵
    1. Fischer, G.,
    2. F. O. Nachtergaele,
    3. S. Prieler,
    4. E. Teixeira,
    5. G. Tóth,
    6. H. van Velthuizen,
    7. L. Verelst, and
    8. D. Wiberg

    . 2012. “Global Agro-Ecological Zones (GAEZ v3.0): Model Documentation.” Rome: International Institute for Applied Systems Analysis/Food and Agriculture Organization. Available at http://pure.iiasa.ac.at/id/eprint/13290/1/GAEZ_Model_Documentation.pdf.
29. ↵
    1. Gallardo, R. K., and
    2. J. Sauer

    . 2018. “Adoption of Labor-Saving Technologies in Agriculture.” Annual Review of Resource Economics 10 (1): 185–206. https://doi.org/10.1146/annurev-resource-100517-023018.

    OpenUrl
30. ↵
    1. Gatto, M.,
    2. M. Wollni,
    3. R. Asnawi, and
    4. M. Qaim

    . 2017. “Oil Palm Boom, Contract Farming, and Rural Economic Development: Village-Level Evidence from Indonesia.” World Development 95: 127–40. https://doi.org/10.1016/j.worlddev.2017.02.013.

    OpenUrl
31. ↵
    1. Gehrke, E., and
    2. C. Kubitza

    . 2021. “Agricultural Productivity and Fertility Rates: Evidence from the Oil Palm Boom in Indonesia.” Journal of Human Resources. https://doi.org/10.3368/jhr.0520-10905R1.
32. ↵
    1. Goodwin, B. K., and
    2. M. T. Holt

    . 2002. “Parametric and Semiparametric Modeling of the Off-Farm Labor Supply of Agrarian Households in Transition Bulgaria.” American Journal of Agricultural Economics 84 (1): 184–209. https://doi.org/10.1111/1467-8276.00252.

    OpenUrlCrossRefWeb of Science
33. ↵
    1. Grass, I.,
    2. C. Kubitza,
    3. V. V. Krishna,
    4. M. D. Corre,
    5. O. Mußhoff,
    6. P. Pütz,
    7. J. Drescher

    , et al. 2020. “Trade-Offs between Multifunctionality and Profit in Tropical Smallholder Landscapes.” Nature Communications 11 (1): 1–13. https://doi.org/10.1038/s41467-020-15013-5.

    OpenUrlCrossRef
34. ↵
    1. Haggblade, S.,
    2. B. Minten,
    3. C. Pray,
    4. T. Reardon, and
    5. D. Zilberman

    . 2017. “The Herbicide Revolution in Developing Countries: Patterns, Causes, and Implications.” European Journal of Development Research 29 (3): 533–59. https://doi.org/10.1057/s41287-017-0090-7.

    OpenUrl
35. ↵
    1. Hansen, M. C.,
    2. P. V. Potapov,
    3. R. Moore,
    4. M. Hancher,
    5. S. A. Turubanova,
    6. A. Tyukavina,
    7. D. Thau

    , et al. 2013. “High-Resolution Global Maps of 21st-Century Forest Cover Change.” Science 342 (6160): 850–53. https://doi.org/10.1126/science.1244693.

    OpenUrlAbstract/FREE Full Text
36. ↵
    1. Kirui, O. K.

    2019. “The Agricultural Mechanization in Africa: Micro-level Analysis of State Drivers and Effects.” Discussion Paper on Development Policy 272. Bonn, Germany: ZEF Center for Development Research.
37. ↵
    1. Klasen, S. K.,
    2. J. Priebe, and
    3. R. Rudolf

    . 2013. “Cash Crop Choice and Income Dynamics in Rural Areas: Evidence for Post-crisis Indonesia.” Agricultural Economics 44: 349–64. https://doi.org/10.1111/agec.12015.

    OpenUrl
38. ↵
    1. Koczberski, G.

    2007. “Loose Fruit Mamas: Creating Incentives for Smallholder Women in Oil Palm Production in Papua New Guinea.” World Development 35 (7): 1172–85. https://doi.org/10.1016/j.worlddev.2006.10.010.

    OpenUrl
39. ↵
    1. Koh, L. P.,
    2. J. Miettinen,
    3. S. C. Liew, and
    4. J. Ghazoul

    . 2011. “Remotely Sensed Evidence of Tropical Peatland Conversion to Oil Palm.” Proceedings of the National Academy of Sciences 108 (12): 5127–32. https://doi.org/10.1073/pnas.1018776108.

    OpenUrlAbstract/FREE Full Text
40. ↵
    1. Kopp, T., and
    2. B. Brümmer

    . 2017. “Traders’ Market Power along Indonesian Rubber Value Chains.” China Agricultural Economic Review 9 (2): 169–87. https://doi.org/10.1108/CAER-07-2015-0080.

    OpenUrl
41. ↵
    1. Kraus, S.,
    2. R. Heilmayr, and
    3. N. Koch

    . 2021. “Spillovers to Manufacturing Plants from Multi-million Dollar Plantations: Evidence from the Indonesian Palm Oil Boom.” Berlin: Mercator Research Institute on Global Commons and Climate Change. Available at https://smkraus.github.io/files/KHK_palm_oil_spillovers_manufacturing.pdf.
42. ↵
    1. Krishna, V. V.,
    2. M. Euler,
    3. H. Siregar, and
    4. M. Qaim

    . 2017a. “Differential Livelihood Impacts of Oil Palm Expansion in Indonesia.” Agricultural Economics 48 (5): 639–53. https://doi.org/10.1111/agec.12363.

    OpenUrl
43. ↵
    1. Krishna, V. V.,
    2. C. Kubitza,
    3. U. Pascual, and
    4. M. Qaim

    . 2017b. “Land Markets, Property Rights, and Deforestation: Insights from Indonesia.” World Development 99: 335–49. https://doi.org/10.1016/j.worlddev.2017.05.018.

    OpenUrl
44. ↵
    1. Kubitza, C.,
    2. V. V. Krishna,
    3. Z. Alamsyah, and
    4. M. Qaim

    . 2018. “The Economics Behind an Ecological Crisis: Livelihood Effects of Oil Palm Expansion in Sumatra, Indonesia.” Human Ecology 46 (1): 107–16. https://doi.org/10.1007/s10745-017-9965-7.

    OpenUrl
45. ↵
    1. Lagakos, D., and
    2. M. E. Waugh

    . 2013. “Selection, Agriculture, and Cross-Country Productivity Differences.” American Economic Review 103 (2): 948–80. https://doi.org/10.1257/aer.103.2.948.

    OpenUrlCrossRef
46. ↵
    1. Lay, J.,
    2. W. Anseeuw,
    3. S. Eckert,
    4. I. Flachsbarth,
    5. C. Kubitza,
    6. K. Nolte, and
    7. M. Giger

    . 2021. Taking Stock of the Global Land Rush: Few Development Benefits, Many Human and Environmental Risks. Analytical Report 3. Bern Open Publishing. Available at https://boris.unibe.ch/156861.
47. ↵
    1. Lewis, W. A.

    1954. “Economic Development with Unlimited Supplies of Labour.” Manchester School 22 (2): 139–91. https://doi.org/10.1111/j.1467-9957.1954.tb00021.x.

    OpenUrlCrossRef
48. ↵
    1. Li, T. M.

    2015. “Social Impacts of Oil Palm in Indonesia: A Gendered Perspective from West Kalimantan.” Occasional Paper 124. Bogor, Indonesia: Center for International Forestry Research. https://doi.org/10.17528/cifor/005579.
49. ↵
    1. Margono, B. A.,
    2. P. V. Potapov,
    3. S. Turubanova,
    4. F. Stolle, and
    5. M. C. Hansen

    . 2014. “Primary Forest Cover Loss in Indonesia over 2000–2012.” Nature Climate Change 4 (8): 730–35. https://doi.org/10.1038/NCLIMATE2277.

    OpenUrl
50. ↵
    1. McArthur, J. W., and
    2. G. C. McCord

    . 2017. “Fertilizing Growth: Agricultural Inputs and Their Effects in Economic Development.” Journal of Development Economics 127: 133–52. https://doi.org/10.1016/j.jdeveco.2017.02.007.

    OpenUrl
51. ↵
    1. Mehraban, N.,
    2. B. L. Debela,
    3. U. Kalsum, and
    4. M. Qaim

    . 2022. “What about Her? Oil Palm Cultivation and Intra-household Gender Roles.” Food Policy 110: 102276. https://doi.org/10.1016/j.foodpol.2022.102276.

    OpenUrl
52. ↵
    1. Obidzinski, K.,
    2. R. Andriani,
    3. H. Komarudin, and
    4. A. Andrianto

    . 2012. “Environmental and Social Impacts of Oil Palm Plantations and Their Implications for Biofuel Production in Indonesia.” Ecology and Society 17 (1). https://doi.org/10.5751/ES-04775-170125.
53. ↵
    1. Pingali, P.

    2007. “Agricultural Mechanization: Adoption Patterns and Economic Impact.” In Handbook of Agricultural Economics: Agricultural Development: Farmers, Farm Production and Farm Markets. Vol. 3, edited by R. Evenson and P. Pingali, 2779–2805. Amsterdam: Elsevier. https://doi.org/10.1016/S1574-0072(06)03054-4.

    OpenUrl
54. ↵
    1. Pirker, J.,
    2. A. Mosnier,
    3. F. Kraxner,
    4. P. Havlík, and
    5. M. Obersteiner

    . 2016. “What Are the Limits to Oil Palm Expansion?” Global Environmental Change 40: 73–81. https://doi.org/10.1016/j.gloenvcha.2016.06.007.

    OpenUrl
55. ↵
    1. Rist, L.,
    2. L. Feintrenie, and
    3. P. Levang

    . 2010. “The Livelihood Impacts of Oil Palm: Smallholders in Indonesia.” Biodiversity and Conservation 19 (4): 1009–24. https://doi.org/10.1007/s10531-010-9815-z.

    OpenUrl
56. ↵
    1. Rowland, D.,
    2. G. Zanello,
    3. E. Waliyo, and
    4. A. Ickowitz

    . 2022. “Oil Palm and Gendered Time Use: A Mixed-Methods Case Study from West Kalimantan, Indonesia.” Forest Policy and Economics 137: 102682. https://doi.org/10.1016/j.forpol.2021.102682.

    OpenUrl
57. ↵
    1. Sheahan, M., and
    2. C. B. Barrett

    . 2017. “Ten Striking Facts about Agricultural Input Use in Sub-Saharan Africa.” Food Policy 67: 12–25. https://doi.org/10.1016/j.foodpol.2016.09.010.

    OpenUrl
58. ↵
    1. Sunding, D., and
    2. D. Zilberman

    . 2001. “The Agricultural Innovation Process: Research and Technology Adoption in a Changing Agricultural Sector.” In Handbook of Agricultural Economics, edited by B. L. Gardner and G. C. Rausser, vol. 1, 207–61. Amsterdam: Elsevier. https://doi.org/10.1016/S1574-0072(01)10007-1.

    OpenUrlCrossRef
59. ↵
    U.S. Department of Agriculture. 2017. “Oil Crops Yearbook.” Available at https://www.ers.usda.gov/data-products/oil-crops-yearbook.aspx.
60. ↵
    1. Villoria, N. B.

    2019. “Technology Spillovers and Land Use Change: Empirical Evidence from Global Agriculture.” American Journal of Agricultural Economics 101 (3): 870–93. https://doi.org/10.1093/ajae/aay088.

    OpenUrl