Agricultural Surplus Labor and Poverty in Indonesia

Agricultural development is facing two problems: insufficient grain production and low profit of farmers. There is a contradiction between the government’s goal of increasing production and the farmer’s goal of increasing profit. Exploring the appropriate management scale of farmland under different objectives is of great significance to alleviate the conflict of interests between the government and farmers. In this study the Cobb-Douglas production function model was used to measure the appropriate management scale of farmland under different objectives in Shaanxi Province and analyze the regional differences. Under the two objectives, the appropriate management scale of the Loess Plateau was the largest in the three regions, followed by Qinba Mountains and Guanzhong Plain. Farmland area and quality were the main influencing factors for the appropriate management scale of farmland under the goal of maximizing the farmland yield, while the nonagricultural employment rate and farmland transfer rate were the main influencing factors under the goal of maximizing farmers’ profits. It is easy for Shaanxi Province to increase farmers’ profits, but more land needed to be transferred to increase farmland yield. These results suggest that in order to balance the goal of increasing yield and profit, the transfer of rural surplus labor should be promoted, and the nonagricultural employment rate should be improved. In Loess Plateau, restoring the ecological environment and enhancing the farmland quality. In Guanzhong Plain, avoiding urban land encroachment on farmland. In Qinba Mountains, developing farming techniques and moderately increasing the intensity of farmland exploit.

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STAFF RESTRUCTURING AT PUBLIC COMPANIES AND ENTREPRENEURIAL TOOLS

Tourism and hospitality management ◽

10.20867/thm.12.1.10 ◽

2006 ◽

Vol 12 (1) ◽

pp. 119-130

Author(s):

Radmila Grozdanić

Keyword(s):

Unemployment Rate ◽

Raw Materials ◽

Corporate Entrepreneurship ◽

Business Incubators ◽

Risk Capital ◽

Market Positioning ◽

Public Companies ◽

Surplus Labor ◽

The Creation

Staff restructuring at public companies (an estimated 40% of Serbia’s 132,000 employees in public companies were made redundant in 2005) has a twofold impact: it raises the unemployment rate that is already worryingly high (34.7%) and it potentially creates new businesses with low sustainability prospects in the first three years as they are unprepared for long-term market positioning and high fiscal (73%) and parafiscal charges. The established practice of paying severance packages has failed to resolve the problem of unemployment in the long term, so good experiences of transition countries should be taken into account. In that sense, this study focuses on business incubators within public companies, aimed at staff restructuring, corporate entrepreneurship as an instrument of support to the creation of new businesses within the existing public companies, the orientation phase of corporate entrepreneurship among surplus labor, the possibility of supporting future entrepreneurs among surplus labor by providing them with repaired equipment and capacities, storage facilities, and raw materials needed by new businesses, and the creation of a risk capital fund for the insurance of loans and investments in the development of new capacities/skills of workers who will be made redundant.

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Impact of Surplus Labor Existence on Land Lease Market in Rural Central Java

GATR Journal of Business and Economics Review ◽

10.35609/jber.2017.2.2(4) ◽

2017 ◽

Vol 2 (2) ◽

pp. 23-30

Author(s):

Ernoiz Antriyandarti ◽

Susi Wuri Ani

Keyword(s):

Rural Areas ◽

Jel Classification ◽

Farm Size ◽

Global Competitiveness ◽

Surplus Labor ◽

Central Java ◽

Self Sufficiency ◽

Job Opportunities ◽

The Government ◽

The Impact

Objective - The Indonesian rice sector seems to lose global competitiveness, and the government intervenes in the market to achieve food self-sufficiency. Particularly, in the main rice producing areas of Central Java, the rice sector does not have a comparative and competitive advantage due to small farm size. Then, we need to investigate the reasons why the farm sizes of rice producers are still small. Methodology/Technique - We hypothesize that the existence of surplus labor in rural areas restrains farm size enlargement. Therefore, we need to examine the existence of surplus labor in study area. By using the empirical model of the Cobb Douglas production function, we test the hypothesis of surplus labor. The estimation result shows that there is a surplus of labor in the study area. Findings - In addition, we examine the impact of surplus labor on land lease market in rural area. This study proves empirically that there is surplus labor in rural areas; therefore, farmers have difficulty finding job opportunities in sectors other than farming. In such a case, they prefer to cultivate rather than lease their land. Novelty - This result implies that the existence of surplus labor restricts the number of land lease contract. As a result, the land lease supply in the land lease market has become very limited. Thus, the existence of surplus labor in rural areas would be a constraint of farm size enlargement. This is the first study which explores the relationship between surplus labor and land lease market in the main rice producer area in Central Java. Type of Paper: Empirical Keywords: Impact; Existence; Surplus Labour; Land Lease Market; Farm Size Enlargement. JEL Classification: E24, H83.

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Agricultural Surplus Labor and Poverty in Indonesia

Agricultural Surplus Labor and Growth Accounting for the Thai and Chinese Economies