Better roads help manufacturers create new jobs, enabling worker transitions out of informal employment, and increasing wages.
This week on VoxDevTalks, Alex Rothenberg joins us to discuss evidence from recent research in Indonesia on the benefits of maintaining and upgrading roads. This work shows that the quality of highways is an important determinant of household welfare, with higher quality roads enabling firm creation in areas which were previously uneconomical for production, and providing employment opportunities which encourage workers to transition out of informal employment.
A column outlining the key takeaways from this research is available here.