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Labor Complementarities and Health in the Agricultural Household

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  • Achyuta Adhvaryu

    ()
    (MEPH Health Policy and Administration, Yale University)

  • Anant Nyshadham

    ()
    (Department of Economics, Yale University)

Abstract

Models of the agricultural household have traditionally relied on assumptions regarding the complementarity or substitutability of family labor inputs. We show how data on time allocations, health shocks and corresponding treatment choices can be used to test these assumptions. Data from Tanzania provide evidence that complementarities exist and can explain the pattern of labor supply adjustments across household members and productive activities following acute sickness. In particular, we find that sick and healthy household members both shift labor away from self-employment and into farming when the sick recover more quickly. Infra-marginal adjustments within farming activity types provide further evidence of farm-specific complementarities.

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Bibliographic Info

Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 996.

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Length: 57 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:egc:wpaper:996

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Keywords: intra-household allocation; health shocks; complementarity;

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References

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  1. Jacoby, H.G., 1990. "Shadow Wages And Peasant Family Labor Supply; An Econometric Application To The Peruvian Sierra," Papers 73, World Bank - Living Standards Measurement.
  2. Joshua S. Graff Zivin & Harsha Thirumurthy & Markus Goldstein, 2006. "AIDS Treatment and Intrahousehold Resource Allocations: Children's Nutrition and Schooling in Kenya," NBER Working Papers 12689, National Bureau of Economic Research, Inc.
  3. Mette Ejrnæs & Claus C. Pörtner, 2004. "Birth Order and the Intrahousehold Allocation of Time and Education," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1008-1019, November.
  4. Wagstaff, Adam, 2005. "The economic consequences of health shocks," Policy Research Working Paper Series 3644, The World Bank.
  5. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier.
  6. Gertler, Paul & Locay, Luis & Sanderson, Warren, 1987. "Are user fees regressive? : The welfare implications of health care financing proposals in Peru," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 67-88.
  7. Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, vol. 81(1), pages 80-96, October.
  8. Stefan Dercon & Pramila Krishnan, 1997. "In sickness and in health... risk-sharing within households in rural Ethiopia," Economics Series Working Papers WPS/1997-12, University of Oxford, Department of Economics.
  9. Baker, Michael & Benjamin, Dwayne, 1997. "The Role of the Family in Immigrants' Labor-Market Activity: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 87(4), pages 705-27, September.
  10. Kniesner, Thomas J, 1976. "An Indirect Test of Complementarity in a Family Labor Supply Model," Econometrica, Econometric Society, vol. 44(4), pages 651-69, July.
  11. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
  12. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Labor Supply, Schooling and the Returns to Healthcare in Tanzania," Working Papers 995, Economic Growth Center, Yale University.
  13. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Healthcare Choices, Information and Health Outcomes," Working Papers 994, Economic Growth Center, Yale University.
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Cited by:
  1. Vellore Arthi & James Fenske, 2013. "Labour and Health in Colonial Nigeria," Oxford University Economic and Social History Series _114, Economics Group, Nuffield College, University of Oxford.

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