A longitudinal study of agriculture households in Indonesia: The effect of land and labor mobility on welfare and poverty dynamics.

The conventional wisdom of Arthur Lewis's dual sector model says that households in the agricultural (traditional) sector who can move out to a non-agricultural (modern) sector will become better off. We then scrutinize the last three waves of the Indonesia Family Life Survey (IFLS) to analyze the existence of the dual theorem. Our study uses Difference in Difference (DiD) regressions and ordered logit regressions to confirm that moving out of agriculture sectors has significantly increased the welfare of poor agricultural households, especially in the period of 2000-2007, but this is not the case of 2007-2014.