Yamauchi, Futoshi2015-01-072015-01-072014-12https://hdl.handle.net/10986/21133This paper uses household panel data from rural Indonesia to examine the impact of road quality on labor supply and wages. First, road projects are found to increase transportation speed. Second, the empirical results from intra-village variations of household endowments and labor market behavior show that an increase in transportation speed raised wages in nonagricultural and agricultural employment, and was associated with a decline in working time in agricultural employment, for households whose members are relatively educated. The findings support potential complementarity between road quality and education.en-USCC BY 3.0 IGOALLOCATIVE EFFICIENCYASPHALTASPHALT ROADSAVERAGE SPEEDCAPITAL INVESTMENTSCARCITIESCOMMUTINGDEVELOPMENT ECONOMICSDISTRICTSDIVISION OF LABORDRIVINGECONOMIC DEVELOPMENTEMPLOYMENTEMPLOYMENT OPPORTUNITIESEQUATIONSFINANCIAL INSTITUTIONSGENDERHOUSEHOLDSHUMAN CAPITALINCOMEINFRASTRUCTURE PROJECTSINFRASTRUCTURESINTERNATIONAL ROUGHNESS INDEXLABOR DEMANDLABOR MARKETLABOR MARKETSLABOR SUPPLYMARKET WAGESMOBILITYMODE OF TRANSPORTATIONPOLITICAL ECONOMYPRICE CHANGESRESOURCE ALLOCATIONROADROAD CONDITIONSROAD CONSTRUCTIONROAD IMPROVEMENTROAD IMPROVEMENTSROAD INFRASTRUCTUREROAD NETWORKSROAD PROJECTSROAD QUALITYROADSROUGHNESSRURAL AREASRURAL DEVELOPMENTRURAL LABORRURAL ROAD CONSTRUCTIONRURAL ROADSSKILLED LABORSPANSPEEDSPEEDSTRANSPORTTRANSPORT COSTSTRANSPORTATIONTRANSPORTATION NETWORKSTRAVEL TIMEURBAN AREASVILLAGE LEVELVILLAGE ROADSVILLAGESWAGES10.1596/1813-9450-7139