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Family Productivity, Labor Supply, and Welfare in a Low Income Country

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  • John L. Newman
  • Paul J. Gertler

Abstract

This paper develops an analytical approach to estimating family labor supply and consumption decisions appropriate for developing countries. The model identifies structural relationships allowing analysis of the welfare implications of intrahousehold allocation decisions, especially across the generations. The approach allows for an arbitrary number of family members, each of whom may or may not engage in multiple activities. We identify the marginal returns to work in self-employment without directly observing the marginal returns or estimating the enterprise's production function. The key feature of the approach is to work with underlying structural marginal return and marginal rate of substitution functions together with first order Kuhn-Tucker conditions. We use this model to analyze family consumption and labor supply decisions of rural landholding households in Peru.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 29 (1994)
Issue (Month): 4 ()
Pages: 989-1026

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Handle: RePEc:uwp:jhriss:v:29:y:1994:4:1:p:989-1026

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Josefina Bruni Celli & Richard Obuchi, 2002. "Adolescents and Young Adults in Latin America, Critical Decisions at a Critical Age: Young Adult Labor Market Experience," Research Department Publications, Inter-American Development Bank, Research Department 3161, Inter-American Development Bank, Research Department.
  2. Laszlo, Sonia, 2008. "Education, Labor Supply, and Market Development in Rural Peru," World Development, Elsevier, Elsevier, vol. 36(11), pages 2421-2439, November.
  3. Gauthier Lanot & Christophe Muller, 1997. "Dualistic sector choice and female labour supply: evidence from formal and informal sector in Cameroon," CSAE Working Paper Series 1997-09, Centre for the Study of African Economies, University of Oxford.
  4. Chang, Yang-Ming & Huang, Biing-Wen & Chen, Yun-Ju, 2012. "Labor supply, income, and welfare of the farm household," Labour Economics, Elsevier, Elsevier, vol. 19(3), pages 427-437.
  5. Ahituv, Avner & Kimhi, Ayal, 2002. "Off-farm work and capital accumulation decisions of farmers over the life-cycle: the role of heterogeneity and state dependence," Journal of Development Economics, Elsevier, Elsevier, vol. 68(2), pages 329-353, August.
  6. Mukherji, Nivedita, 2004. "Government policies and graft in an economy with endogenous labor supply," Journal of Development Economics, Elsevier, Elsevier, vol. 73(1), pages 423-434, February.
  7. Margaret E. Grosh & Paul Glewwe, 1998. "Data Watch: The World Bank's Living Standards Measurement Study Household Surveys," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(1), pages 187-196, Winter.
  8. Fafchamps, Marcel & Quisumbing, Agnes R., 1998. "Human capital, productivity, and labor allocation in rural Pakistan," FCND discussion papers, International Food Policy Research Institute (IFPRI) 48, International Food Policy Research Institute (IFPRI).
  9. Ayal Kimhi, 2003. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," Labor and Demography, EconWPA 0307001, EconWPA.
  10. Rizov, Marian & Swinnen, Johan F.M., 2004. "Human capital, market imperfections, and labor reallocation in transition," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 745-774, December.
  11. Christophe Muller, 2003. "Female Activity Choice In A Dual Context: An Integrated Model For Formal And Informal Sectors In Cameroon," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2003-39, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  12. Paolisso, Michael J. & Hallman, Kelly & Haddad, Lawrence James & Regmi, Shibesh, 2001. "Does cash crop adoption detract from childcare provision?," FCND discussion papers, International Food Policy Research Institute (IFPRI) 109, International Food Policy Research Institute (IFPRI).
  13. Gong, Xiaodong & van Soest, Arthur, 2000. "Family Structure and Female Labour Supply in Mexico City," IZA Discussion Papers 214, Institute for the Study of Labor (IZA).
  14. Garcia, Luis, 2006. "Oferta de trabajo infantil y el trabajo en los quehaceres del hogar
    [The supply of child labor and household work]
    ," MPRA Paper 31402, University Library of Munich, Germany.
  15. André Croppenstedt, 2006. "Household Income Structure and Determinants in Rural Egypt," Working Papers, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) 06-02, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

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