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The Effects of Transaction Costs on Labor Market Participation and Earnings: Evidence from Rural Philippine Markets

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Author Info

  • Lanzona, L.A.
  • Evenson, R.E.
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    Abstract

    The paper aims to measure transaction costs and its effects on labor market participation and on wage earnings. The observed differences between buying and sellin gprices of rice across households are used to calculate transaction costs indices for villages which are incorporated into the standard labor market participation and Mincer wage equations. The estimates indicate that transaction costs may be a source of the income differentials between (a) the landed and the landless, (b) the rural and the urban areas, and (c) the males and the females.

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    Bibliographic Info

    Paper provided by Yale - Economic Growth Center in its series Papers with number 790.

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    Length: 25 pages
    Date of creation: 1997
    Date of revision:
    Handle: RePEc:fth:yalegr:790

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    Postal: U.S.A.; YALE UNIVERSITY, ECONOMIC GROWTH CENTER, YALE STATION NEW-HAVEN CONNECTICUT 06520 U.S.A
    Phone: (203) 432-3610
    Fax: (203) 432-3898
    Web page: http://www.econ.yale.edu/~egcenter/
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    Related research

    Keywords: LABOUR MARKET ; PHILIPPINES ; TRANSACTION COSTS;

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    Cited by:
    1. Evenson, R.E. & Kimhi, A. & DeSilva, S., 2000. "Supervision and Transaction Costs: Evidence from Rice Farms in Bicol, the Philippines," Papers 814, Yale - Economic Growth Center.

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