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Product market integration and household labor supply in a poor economy: evidence from Vietnam

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  • Edmonds
  • Eric V.
  • Pavcnik, Nina

Abstract

This report considers how product market integration in a country's primary agricultural export alters the economic activities of men and women in a poor economy. Between 1993 and 1997, Vietnam relaxed its rice export quota and freed internal restrictions on the trade of rice across regions. These reforms contributed to an almost 30 percent increase in the real price of rice. Using a panel of rural Vietnamese communities that spans the period of policy change,the authors relate the regional and intertemporal variation in the price of rice to changes in the economic activities of children, young adults, and adults by gender. They find that higher rice prices are associated with lower participation in wage work by boys, girls, and young adults, and lower participation in household production by adults. Moreover, higher rice prices are associated with less time devoted to household production for all age groups and adults devoting more hours to wage work. Finally, with the exception of children, labor market responses to changes in rice prices mostly do not differ statistically for males and females.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3234.

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Date of creation: 03 Mar 2004
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Handle: RePEc:wbk:wbrwps:3234

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Related research

Keywords: Environmental Economics&Policies; Labor Policies; Economic Theory&Research; Health Economics&Finance; Markets and Market Access; Environmental Economics&Policies; Health Economics&Finance; Economic Theory&Research; Access to Markets; Markets and Market Access;

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  1. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
  2. Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers, World Bank - Living Standards Measurement 121, World Bank - Living Standards Measurement.
  3. Constance Newman, 2002. "Gender, Time Use, and Change: The Impact of the Cut Flower Industry in Ecuador," World Bank Economic Review, World Bank Group, World Bank Group, vol. 16(3), pages 375-395, December.
  4. Rosenzweig, Mark R., 1988. "Labor markets in low-income countries," Handbook of Development Economics, Elsevier, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 15, pages 713-762 Elsevier.
  5. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 114(493), pages F22-F49, 02.
  6. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier, Elsevier.
  7. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(4), pages 663-679, August.
  8. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  9. Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
  10. Ann Harrison & Gordon Hanson, 1999. "Who Gains from Trade Reform? Some Remaining Puzzles," NBER Working Papers 6915, National Bureau of Economic Research, Inc.
  11. Loren Brandt & Dwayne Benjamin, 2002. "Agriculture and Income Distribution in Rural Vietnam under Economic Reforms: A Tale of Two Regions," William Davidson Institute Working Papers Series 519, William Davidson Institute at the University of Michigan.
  12. Kristin Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 141-164, Fall.
  13. Edmonds, Eric V. & Pavcnik, Nina, 2006. "Trade liberalization and the allocation of labor between households and markets in a poor country," Journal of International Economics, Elsevier, vol. 69(2), pages 272-295, July.
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Cited by:
  1. Kathleen Beegle & Rajeev Dehejia & Roberta Gatti, 2009. "Why Should We Care About Child Labor?: The Education, Labor Market, and Health Consequences of Child Labor," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
  2. Edmonds & Eric V., 2004. "Household composition and the response of child labor supply to product market integration: evidence from Vietnam," Policy Research Working Paper Series 3235, The World Bank.

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