Table 2

Effect of Oil Palm Cultivation on Annual Farm Household Income (2012–2015–2018)

Village-Level Fixed EffectsHousehold-Level Fixed Effects
Total Household Expenditure (log) (1)Total Household Expenditure (log) (2)Total Household Expenditure (log) (3)Total Household Expenditure (log) (4)Total Household Expenditure (log) (5)Total Household Expenditure (log) (6)
Share of oil palm (0–1)0.294***0.268***0.173***0.232**0.202*0.152
(0.060)(0.057)(0.051)(0.115)(0.113)(0.109)
Employed household members (= 1)−0.605−0.608−0.011−0.008
(1.034)(0.916)(0.033)(0.033)
Self-employed household members (= 1)0.256***0.240***0.148***0.148***
(0.034)(0.032)(0.040)(0.040)
Total farm size (ha)0.049***0.038***
(0.005)(0.010)
F-statistic10.85314.29421.1624.5335.2756.063
Observations1,8541,8541,8541,7611,7611,761

Note: The data source is farm-household data. Clustered standard errors at the household level are in parentheses. The dependent variable is the log of the total annual household expenditure (1,000 IDR). We control for the age and education of the household head, female-headed households, migrant households, number of women and adults, farm characteristics, distance to province capital, distance to next palm oil mill, employed household members, self-employed household members, total farm size, and year dummies. Additional covariates included in the estimation are in Appendix Table A5.

  • * p < 0.10;

  • ** p < 0.05;

  • *** p < 0.01.