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All Journal Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijakan Publik
Khoirunurrofik Khoirunurrofik
Faculty of Economic and Business, University of Indonesia, Jakarta, Indonesia
Economics, Econometrics & Finance

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Does Toll Road Operation Impact Wages and Unemployment? Evidence from Java Island Tiara Ratna Dewi; Khoirunurrofik Khoirunurrofik
Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijakan Publik Vol. 11 No. 3 (2026): Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijak
Publisher : Direktorat Jenderal Perbendaharaan, Kementerian Keuangan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33105/itrev.v11i3.1403

Abstract

Research Originality – To address the empirical gap left by previous studies that focused primarily on regional growth and industrial productivity, this study evaluates the impact of toll roads on average wages and open unemployment rates. The analysis utilizes Labor Force Survey microdata and focuses specifically on Java Island, where the majority of the toll road in Indonesia operates. Research objectives – This study uses difference-in-differences with variation in the treatment timing with data from regencies/cities in Java Island from 2010 to 2023. Research methods – This study using difference in differences with variation in the treatment timing with data from regencies/cities in Java Island from year 2010 to 2023. Empirical result – This study implies that construction of toll roads has positive and significant impacts to wages. Then, the construction of toll roads doesn’t have an impact on unemployment but shows a positive correlation in which the operation of toll road increases the unemployment in the area with toll. Implications – The findings of the research suggest that the toll road can be maintained, and the government must anticipate the potential crowding out of workers shifting from the primary to the secondary sector due to wage increases in the latter.
Co-Authors Tiara Ratna Dewi