Abstract
ABSTRACT Rural–urban migration is a common demographic phenomenon in developing countries. Over the last four decades, Indonesia has had the highest rate of urbanization among Asian countries, which has been driven primarily by rural–urban migration. This type of migration has strong economic and social impacts on individuals at both the origins and the destinations. The study analyses the patterns and impacts of rural–urban migration based on the migration motives of rural households. The difference-in-differences approach is applied to identify migration’s impact on the welfare of migrant households in rural areas based on migration motives. The study uses Indonesian Family Life Survey (IFLS) data from 2007 and 2014, which consists of 2007 household samples spread over 13 provinces. Migration is found to have a positive and significant impact on migrant household welfare based on investment motives, but an insignificant result regarding the impact of migration based on risk-coping motives. Also found is the difference in migration patterns between the two migration motives.
Highlights
Population movement has a significant impact on the development process
Migration based on investment motive positively and significantly affected the difference in household consumption expenditure per capita in the rural area in all of the models used, except for model 4
Migration based on investment motive statistically led to a greater and more significant impact compared with migration based on risk concerning the difference of household welfare in the rural area
Summary
Population movement has a significant impact on the development process. Even though migration provides benefits for migrants, it is not necessarily beneficial for society. One of the important factors that drives urbanization in Indonesia is migration activities from rural to urban areas (Figure 1(a)). Another factor is that Indonesia is characterized by uneven population distribution among its islands. Java is the most populous island with 57% of Indonesia’s population living on the island, even though Java accounts for only 7% of the total area of Indonesia This has resulted in high population density on the island, while accounting for 1.055 people/km (Figure 1(b)). These factors undoubtedly contribute to the success and failure of development both at the national and regional levels
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