Examining Preference Heterogeneity in Best-Worst Scaling: Case of Preferences for Job Opportunities in Artisanal Small-Scale Gold Mining (ASGM) Communities in Indonesia

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This research empirically examines the preferences for job-related attributes among rural villagers living close to artisanal and small-scale gold mining (ASGM) in Indonesia. Based on hypothetical scenarios in which a private company collaborates with the local government to establish a food processing industry in these villages, a questionnaire survey designed with best–worst scaling (BWS) was administered to households to determine their preferences. Additionally, the heterogeneity among the villagers was examined by applying a latent class logit (LCL) model. The main household survey was conducted in 2019 in Bone Bolango Regency, Gorontalo Province. The estimation results revealed that villagers are separated into four classes, and each class has different and unique preferences. Creating more job opportunities for society is a highly evaluated attribute; however, the preference for skill acquisition differs among groups. The results indicate that accounting for heterogeneous preferences regarding job opportunities is helpful to delink dependency on ASGM and health hazards and improve the livelihoods of rural villagers. The study yields key information to substantially reduce environmental and health hazards in the poverty-plagued ASGM community by facilitating job opportunities in Indonesia.

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