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Education, Labor Supply, and Market Development in Rural Peru

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Laszlo, Sonia

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Abstract

Summary Research suggests that education has a limited effect on subsistence farm productivity. Yet, rural incomes include more than farming as households diversify their income portfolios. Furthermore, education may affect the number of labor hours supplied. Utilizing data from Peru, this paper finds that farm households benefit from more education by finding more lucrative opportunities, characterized by fewer hours. The extent to which this is possible depends on how well local markets are developed. Since education policy takes time to yield returns, policy makers have an additional tool at their disposal: improving market access will also increase the returns to education.

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Publisher Info
Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 11 (November)
Pages: 2421-2439
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Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2421-2439

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: rural development education labor supply Latin America Peru;

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References listed on IDEAS
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    Other versions:
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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Dwayne Benjamin & Loren Brandt & Jia-Zhueng Fan, 2003. "Ceaseless Toil? Health and Labor Supply of the Elderly in Rural China," William Davidson Institute Working Papers Series 2003-579, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
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