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Labor markets and labor allocative efficiency among farm households in western Kenya

Author

Listed:
  • Kamau, Mercy W.
  • Burger, Kees
  • Giller, Ken E.
  • Kuyvenhoven, Arie

Abstract

This paper evaluates how efficiently farm households allocate labor between farm and off-farm activities. It estimates farm and off-farm labor supply functions to determine the factors that influence labor allocation. Both the shadow wage and the off-farm wage rate are included as regressors in the supply functions. The study reveals that, on average, farm households are inefficient, but when linked to labor markets their productivity and internal efficiency increase. The decision to sell labor is influenced by location, and off-farm employment is difficult to find, particularly for the better educated. Interventions should aim to increase opportunities for off-farm employment for persons with skills or with higher than the basic level of education, and to reduce the cost of participating in labor markets, for example by improving rural infrastructure. Addressing failures in rural financial markets would save poor households from having to sell their labor for less than they get from their farms.

Suggested Citation

  • Kamau, Mercy W. & Burger, Kees & Giller, Ken E. & Kuyvenhoven, Arie, 2009. "Labor markets and labor allocative efficiency among farm households in western Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 3(2), pages 1-15, September.
    • Handle: RePEc:ags:afjare:56926
    DOI: 10.22004/ag.econ.56926
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    Cited by:

    1. Daniel Micheal Okello & Jackline Bonabana-Wabbi & Basil Mugonola, 2019. "Farm level allocative efficiency of rice production in Gulu and Amuru districts, Northern Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-19, December.

    More about this item

    Keywords

    Labor and Human Capital;

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