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Human capital, productivity, and labor allocation in rural Pakistan

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Author Info
Fafchamps, Marcel
Quisumbing, Agnes R.

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Abstract

This paper investigates whether human capital affects the productivity and labor allocation of rural households in four districts of Pakistan. The investigation shows that households with better-educated males earn higher off-farm income and divert labor resources away from farm activities toward nonfarm work. Education has no significant effect on productivity in crop and livestock production. The effect of human capital on household incomes is partly realized through the reallocation of labor from low-productivity activities to nonfarm work. Female education and nutrition do not affect productivity and labor allocation in any systematic fashion, a finding that is consistent with the marginal role women play in market-oriented activities in Pakistan. As a by-product, our estimation approach also tests the existence of perfect labor and factor markets; the hypothesis that such markets exist is strongly rejected.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 48.

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Date of creation: 1998
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Handle: RePEc:fpr:fcnddp:48

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Keywords: employment Gender Female labor Income distribution Labor Gender issues. Labor productivity. Pakistan. Nutrition

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References listed on IDEAS
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Full references

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. Marcel Fafchamps & Takashi Kurosaki, 2000. "Insurance Market Efficiency and Crop Choices in Pakistan," Economics Series Working Papers 012, University of Oxford, Department of Economics. [Downloadable!]
    Other versions:
  2. Fafchamps, Marcel & Minten, Bart, 1998. "Marketing policy reform and competitiveness," MTID discussion papers 23, International Food Policy Research Institute (IFPRI). [Downloadable!]
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