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Shadow Wages And Peasant Family Labor Supply; An Econometric Application To The Peruvian Sierra

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  • JACOBY, H.G.

Abstract

This paper develops a methodology for estimating structural time-allocation models for self-employed households and applies it to peasant family labor supply behavior in the Peruvian Sierra. The oppurtunity costs of time, or shadow wages, of household workers are explicitly estimated from an agricultural production function. Using an instrumental variables procedure, the household's structural labor supply parameters are recovered from variation in these shadow wages. The empirical results are robust to a number of alternative specifications and diagnostic tests and lend support to the rational allocation of time by peasant households. Copyright 1993 by The Review of Economic Studies Limited.

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Bibliographic Info

Paper provided by World Bank - Living Standards Measurement in its series Papers with number 73.

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Length: 44 pages
Date of creation: 1990
Date of revision:
Handle: RePEc:fth:wobali:73

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Keywords: prix du marche ; family ; perou;

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