Internal Migration Behavior and Income in Indonesia

Authors

  • Jalu Tri Atmojo Master Program in Development Economics, Faculty of Economics and Business, Gadjah Mada University, Indonesia
  • Eny Sulistyaningrum Master Program in Development Economics, Faculty of Economics and Business, Gadjah Mada University, Indonesia

Keywords:

internal migration, income distribution, PSM with DiD, IFLS

Abstract

This study analyzes the impact of internal migration behavior on individual income in Indonesia. The study uses longitudinal data from the Indonesian Family Life Survey (IFLS) waves 4 and 5 and considers individuals of working age between the ages of 15 and 64 who migrate for reasons of work or are looking for work. Using a combination of propensity score matching and difference in differences approaches (PSM with DiD) and controlling for individual, household, and regional characteristics, the results show that some migration patterns are welfare increasing. Migrating for work once (never move again) and migrating for work repeatedly have significant positive impacts on individual income. In contrast, migrating once and then returning to one’s place of origin does not have a significant impact on individual income.

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Published

2022-03-31