The System of Rice Intensification and its Impacts on Household Income and Child Schooling: Evidence from Rural Indonesia

Abstract The yield potential of a set of improved rice management practices, known as the System of Rice Intensification (SRI), has attracted much attention. Yet we know surprisingly little about SRI's socio‐economic impact. Using data from Indonesia in 2009, this study assesses the impact of SRI on household incomes and child schooling. We find that SRI generates significant estimated yield gains. However, because SRI induces a reallocation of family labor from non‐farm to farm, SRI users enjoy no household income gains. Despite the increased labor demand for farming, we find no evidence that SRI has a child labor effect.