A micro analysis of labour use in agriculture in Wargabinangun Village, West Java, Indonesia

Abstract

The aim of this study is to examine the balance between labour demand and labour supply. The surplus or shortage of labour among a sub-sample of land operating farmers in Wargabinangun Village, West Java, Indonesia is specifically investigated. The study also observes the influence of the demographic factor upon the behaviour of farmers in utilizing labour and farm land. The Cross-sectional data used in this study were collected by the Agro Economic Survey (AES) Bogor, and cover the utilization of labour in agricultural and non-agricultural activities, sources and levels of income, and socio-demographic aspects of the farmers sampled. The data cover the 1979 dry season, together with the 1978/1979 wet season for certain elements only (e.g. income from trade sources, hired-out labour and husbandry). The empirical analysis of this study is based on two main theories: (1) the Labour Utilization Approach (Yotopoulos, 1967 and Yotopoulos and Nugent, 1976), (2) the Demographic Differentiation Approach (Chayanov 1966). The first theory gives a method of measuring the surplus or shortage of labour among the farmers of the sub-sample, whilst the second theory examines labour use relationships pertaining to family structure. In the examination here the Adult Man Equivalent Production Units (AEPU) and the Consumer/producer ratios (CPR) of families are related to the total area of land operated, and to the utilization of farm household labour in economic activities. In general, it is found that a labour surplus tends to occur among farmers who cultivate less than 0.5 ha while a labour shortage occurs among those who cultivate 1 ha or more. There are statistically significant differences amongst farmers, grouped according to <0.5 ha, 0.5-1.0 ha and >1.0 ha of farm land operated. The less land farmers cultivate, and the less non-agricultural income they earn, the larger their surplus of labour. It is found that one out of ten male farmers was in disguised unemployment during 1979 dry season. The area of farm land operated varies significantly between different AEPU (Adult man equivalent production unit) and (Consumer/producer ratio) groups, which supports Chayanovian demographic differentiation theory. Viewing family economic activities or other activities such as rice planting and hiring out of labour, it appears that the higher labour force available in a family, the more labour is hired out. A rather uncommon case occurs where the the more the labour supply available to a family, the more hired-in labour is demanded. This is due to the fact that the village we observed is situated in a coastal area which has good irrigation with simultaneous cultivation and harvesting systems. Families making high average use of their labour accordingly tend to need relatively more extra labour at peak periods. It is hoped that the result of this study can be used in basic planning for village development, particularly in increasing the utilization of excess labour force in the agricultural sector. The study also indicates directions for more accurate and reliable future research on this topic.