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Household Labor Supply In Urban Areas Of Bolivia

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Author Info
Menno Pradhan
Arthur Van Soest

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Abstract

We analyze labor supply behavior and the choice between formal and informal sector work of the two spouses in families in urban areas of a developing country, using cross - section data from Bolivia drawn in 1989. The model generalizes the neoclassical family labor supply model. Nonmonetary returns of formal sector employment capture the fact that the choice between sectors is not exclusively based on wage differentials. Wage equations, nonmonetary returns equations, and labor supply equations are estimated jointly by smooth simulated maximum likelihood. We find substantial cross - wage elasticities of working hours of both partners, and large substitution elasticities between the two sectors. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 79 (1997)
Issue (Month): 2 (May)
Pages: 300-310
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Handle: RePEc:tpr:restat:v:79:y:1997:i:2:p:300-310

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  1. Gong, X. & Soest, A. van, 1997. "Family structure and female labour supply in Mexico City," Discussion Paper 114, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Henley, Andrew & Arabsheibani, G. Reza & Carneiro, Francisco G., 2006. "On defining and measuring the informal sector," Policy Research Working Paper Series 3866, The World Bank. [Downloadable!]
    Other versions:
  3. Cunningham, Wendy V., 2001. "Breadwinner or caregiver? - how household role affectslabor choices in Mexico," Policy Research Working Paper Series 2743, The World Bank. [Downloadable!]
  4. Garrett, James, 2004. "Living life," FCND discussion papers 171, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
    • Garrett, James, 2004. "Living life," FCND briefs 171, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Marie W. Arneberg, John K. Dagsvik and Zhiyang Jia, 2002. "Labor Market Modeling Recognizing Latent Job Attributes and Opportunity Constraints An Empirical Analysis of Labor Market Behavior of Eritrean Women," Discussion Papers 331, Research Department of Statistics Norway. [Downloadable!]
  6. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004. [Downloadable!]
  7. Gong, X. & Soest, A. van & Villagomez, E., 2000. "Mobility in the urban labor market : a panel data analysis for Mexico," Discussion Paper 46, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  8. Grimm, Michael & Gunther, Isabel, 2005. "Inter- and Intra-household Linkages Between the Informal and Formal Sector: A Case Study for Urban Burkina Faso," Working Papers RP2005/14, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  9. Ersado, Lire, 2002. "Child labor and school decisions in urban and rural areas," FCND discussion papers 145, International Food Policy Research Institute (IFPRI). [Downloadable!]
  10. Grosh, Margaret E & Glewwe, Paul, 1998. "Data Watch: The World Bank's Living Standards Measurement Study Household Surveys," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 187-96, Winter. [Downloadable!] (restricted)
  11. Ersado, Lire, 2003. "Child Labor And Schooling Decisions In Urban And Rural Areas: Cross-Country Evidence," 2003 Annual meeting, July 27-30, Montreal, Canada 21924, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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