THE HETEROGENEOUS EFFECT OF FISHERMEN GROUP PARTICIPATION ON HOUSEHOLD INCOME: EVIDENCE FROM SMALL-SCALE FISHERMEN IN EAST JAVA OF INDONESIA

Abstract

Fishermen groups have an essential role to improve fishermen’s welfare. However, little evidence demonstrated the association between fishermen's group participation on fishermen’s income. This study aims to estimate the heterogeneous effects of fishermen group participation on the household income of fishermen. Cross-sectional data from 178 respondents were considered from fishermen in Malang and Probolinggo regency. Furthermore, we employ an instrumental variable quantile regression (IVQR) model to estimate the heterogeneous effect of fishermen group participation on the household income of fishermen. Generally, the finding indicated that fishermen group participation has a positive and significant effect on the household income of fishermen. Fishermen who participated in the fishermen group tend to have a higher income than those who did not. The heterogeneous effect revealed that at the lowest level of household income level (20th quantile) the fishermen group participation has the lowest income effect of the fishermen. However, the income effect of fishermen group participation is higher in the 40th, 60th, and 80th quantile income. Therefore, we suggested that the fishermen's group participation should be promoted to improve the welfare condition of fishermen.

Keywords

• fishermen group
• ivqr
• income
• east java
• welfare