Rural poverty and labour force participation: Evidence from Indonesia's Village fund program
1Department of Economics & Australia Indonesia Centre, University of Western Australia, Perth, Australia.
Plos One
|June 21, 2023
Summary
Indonesia's Village Fund Program (VFP) boosted rural consumption and increased female labor force participation by 10 percentage points. This shift, particularly from agriculture to services, contributed to significant rural poverty reduction.
Area of Science:
- Development Economics
- Public Policy
- Sociology
Background:
- Poverty disproportionately affects rural populations in developing nations.
- Indonesia's Village Fund Program (VFP) aimed to empower rural villages with financial resources and autonomy.
- The VFP was designed to foster investment in infrastructure, human capital, and local employment.
Purpose of the Study:
- To evaluate the impact of Indonesia's Village Fund Program (VFP) on rural poverty.
- To assess the VFP's effect on female labor force participation in rural Indonesia.
Main Methods:
- Utilized nationally representative data collected before and after the VFP implementation.
- Employed econometric analysis to determine the program's association with changes in household consumption and labor participation.
Main Results:
- The VFP was linked to improved rural household consumption, especially in agricultural households.
- Rural female labor force participation rose by approximately 10 percentage points.
- Observed a sectoral shift from agriculture to the service sector for rural employment.
Conclusions:
- The Village Fund Program has positively impacted rural economies in Indonesia.
- Increased female labor force participation and a sectoral shift are key outcomes associated with the VFP.
- The VFP demonstrates a viable strategy for rural poverty alleviation and economic development.
More Related Videos
10:57Determining Soil-transmitted Helminth Infection Status and Physical Fitness of School-aged Children
Published on: August 22, 2012
23.6K
09:33Visualizing Field Data Collection Procedures of Exposure and Biomarker Assessments for the Household Air Pollution Intervention Network Trial in India
Published on: December 23, 2022
2.3K
Related Concept Videos
01:30Community Based Intervention
66
Community-based interventions in mental health represent a paradigm shift from institution-centered care to treatments embedded within the fabric of local communities. By prioritizing inclusion and leveraging existing societal structures, this approach fosters a supportive environment conducive to addressing mental health challenges while promoting individual dignity and agency.
Foundations of Community Mental Health Programs
Central to the success of community-based interventions is the...
Foundations of Community Mental Health Programs
Central to the success of community-based interventions is the...
66
00:55Convenience Sampling Method
9.0K
Sampling is a technique to select a portion (or subset) of the larger population and study that portion (the sample) to gain information about the population. Data are the result of sampling from a population. The sampling method ensures that samples are drawn without bias and accurately represent the population.
Convenience sampling is a non-random method of sample selection; this method selects individuals that are easily accessible and may result in biased data. For example, a marketing...
Convenience sampling is a non-random method of sample selection; this method selects individuals that are easily accessible and may result in biased data. For example, a marketing...
9.0K
01:43Sustainable Development
13.4K
As the human population continues to grow and use resources, we must be mindful of our planet’s natural limits. Sustainable development provides a pathway to maintain and improve human life now while also ensuring that future generations will have the resources that they need. The long-term success of sustainability efforts rests on understanding the interplay between human actions and ecological systems.
13.4K
01:16Stratified Sampling Method
12.1K
Sampling is a technique to select a portion (or subset) of the larger population and study that portion (the sample) to gain information about the population. The sampling method ensures that samples are drawn without bias and accurately represent the population. Because measuring the entire population in a study is not practical, researchers use samples to represent the population of interest.
To choose a stratified sample, divide the population into groups called strata and then take a...
To choose a stratified sample, divide the population into groups called strata and then take a...
12.1K
01:30Primary Healthcare Services
1.4K
Primary care promotes wellness and prevents disease. This care includes health promotion, education, protection (such as immunizations), early disease screening, and environmental considerations. Settings providing this type of healthcare include physician offices, public health clinics, school nursing, and community health nursing.
In 1978, international leaders convened in Alma-Ata, Kazakhstan, for what would be a pivotal event in global health. The Alma-Ata Declaration was the first to call...
In 1978, international leaders convened in Alma-Ata, Kazakhstan, for what would be a pivotal event in global health. The Alma-Ata Declaration was the first to call...
1.4K
01:01Production Efficiency
16.9K
Net production efficiency (NPE) is the efficiency at which organisms assimilate energy into biomass for the next trophic level. Due to low metabolic rates and less energy spent on thermoregulatory processes, the NPE of ectotherms (cold-blooded animals) is 10 times higher than endotherms (warm-blooded animals).
16.9K