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All Journal Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis
Riyanto
Department of Economics, Faculty of Economy and Business, University of Indonesia, Jakarta, Indonesia
Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

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Labor Dynamics and Rice Productivity in Indonesia: Evidence of Nonlinear and Regional Effects From Provincial Panel Data Danan Perri Sandria; Riyanto
Jurnal AGRISEP JURNAL AGRISEP VOL. 25 NO. 02 2026 (SEPTEMBER)
Publisher : Badan Penerbitan Fakultas Pertanian, Universitas Bengkulu

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31186/jagrisep.25.2.597-610

Abstract

This study examines the impact of agricultural labor on rice productivity in Indonesia and explores how regional heterogeneity shapes this relationship. Using provincial panel data covering 32 provinces during 2013–2023, the research employs a Fixed Effects Model (FEM) to estimate the effects of labor input while controlling for unobserved provincial characteristics and incorporating key agricultural inputs such as credit, fertilizers, mechanization, and irrigation infrastructure. The results reveal a positive linear relationship between labor and productivity, indicating that agricultural labor expansion still yields constant positive returns. The novelty lies in the heterogeneity analysis that in Java, a U-shaped relationship between labor and productivity reflects overemployment and the need for efficiency-oriented strategies, whereas outside Java, labor and credit continue to yield positive returns, emphasizing expansion and inclusion. These findings suggest that uniform agricultural policies are insufficient; productivity enhancement must be regionally differentiated, focusing on mechanization and efficiency in Java and on capital access and labor mobilization elsewhere. The study contributes to provides evidence-based insights for designing inclusive and region-sensitive productivity policies.
Co-Authors Danan Perri Sandria