<![CDATA[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.]]>
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