IDEAS home Printed from
   My bibliography  Save this article

A Test of Heterogeneity of Family and Hired Labour in Asian Agriculture


  • Deolalikar, Anil B
  • Vijverberg, Wim P M


In this paper, the authors test the hypotheses that family and hired labor are perfect subst itutes in agricultural production in developing countries, and that t here is no quality differential between an hour of family and of hire d labor. Both hypotheses, commonly maintained as assumptions in resea rch on agricultural production, are rejected on the basis of statisti cal tests using farm-level data from India and Malaysia. The two kind s of labor are observed to have an elasticity of substitution between them that is well below infinity (indeed not significantly different from zero in the Indian case), and hired labor is found to be of hig her quality than family labor. The results suggest that more attentio n needs to be paid to the treatment of labor in theoretical and econo metric modeling and in data collection. Copyright 1987 by Blackwell Publishing Ltd

Suggested Citation

  • Deolalikar, Anil B & Vijverberg, Wim P M, 1987. "A Test of Heterogeneity of Family and Hired Labour in Asian Agriculture," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(3), pages 291-305, August.
  • Handle: RePEc:bla:obuest:v:49:y:1987:i:3:p:291-305

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    1. Peter Reinhard Hansen & Asger Lunde & James M. Nason, 2003. "Choosing the Best Volatility Models: The Model Confidence Set Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(s1), pages 839-861, December.
    2. Jondeau, Eric & Rockinger, Michael, 2001. "Gram-Charlier densities," Journal of Economic Dynamics and Control, Elsevier, vol. 25(10), pages 1457-1483, October.
    3. León, à ngel & Mencía, Javier & Sentana, Enrique, 2009. "Parametric Properties of Semi-Nonparametric Distributions, with Applications to Option Valuation," Journal of Business & Economic Statistics, American Statistical Association, vol. 27(2), pages 176-192.
    4. Whitney K. Newey & Douglas G. Steigerwald, 1997. "Asymptotic Bias for Quasi-Maximum-Likelihood Estimators in Conditional Heteroskedasticity Models," Econometrica, Econometric Society, vol. 65(3), pages 587-600, May.
    5. Velasco, Carlos & Robinson, Peter M., 2001. "Edgeworth Expansions For Spectral Density Estimates And Studentized Sample Mean," Econometric Theory, Cambridge University Press, vol. 17(03), pages 497-539, June.
    6. Hansen, Peter Reinhard, 2005. "A Test for Superior Predictive Ability," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 365-380, October.
    7. Paul H. Kupiec, 1995. "Techniques for verifying the accuracy of risk measurement models," Finance and Economics Discussion Series 95-24, Board of Governors of the Federal Reserve System (U.S.).
    8. Awartani, Basel M.A. & Corradi, Valentina, 2005. "Predicting the volatility of the S&P-500 stock index via GARCH models: the role of asymmetries," International Journal of Forecasting, Elsevier, vol. 21(1), pages 167-183.
    9. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April.
    10. Hansen, Peter Reinhard & Lunde, Asger, 2006. "Consistent ranking of volatility models," Journal of Econometrics, Elsevier, vol. 131(1-2), pages 97-121.
    11. Morten B. Jensen & Asger Lunde, 2001. "The NIG-S&ARCH model: a fat-tailed, stochastic, and autoregressive conditional heteroskedastic volatility model," Econometrics Journal, Royal Economic Society, vol. 4(2), pages 1-10.
    12. Gneiting, Tilmann & Raftery, Adrian E., 2007. "Strictly Proper Scoring Rules, Prediction, and Estimation," Journal of the American Statistical Association, American Statistical Association, vol. 102, pages 359-378, March.
    13. Patton, Andrew J., 2011. "Volatility forecast comparison using imperfect volatility proxies," Journal of Econometrics, Elsevier, vol. 160(1), pages 246-256, January.
    14. Glosten, Lawrence R & Jagannathan, Ravi & Runkle, David E, 1993. " On the Relation between the Expected Value and the Volatility of the Nominal Excess Return on Stocks," Journal of Finance, American Finance Association, vol. 48(5), pages 1779-1801, December.
    15. Robert F. Engle & Simone Manganelli, 2004. "CAViaR: Conditional Autoregressive Value at Risk by Regression Quantiles," Journal of Business & Economic Statistics, American Statistical Association, vol. 22, pages 367-381, October.
    16. Jose A. Lopez, 1999. "Methods for evaluating value-at-risk estimates," Economic Review, Federal Reserve Bank of San Francisco, pages 3-17.
    17. Diebold, Francis X & Gunther, Todd A & Tay, Anthony S, 1998. "Evaluating Density Forecasts with Applications to Financial Risk Management," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(4), pages 863-883, November.
    18. Sargan, J D, 1975. "Gram-Charlier Approximations Applied to t Ratios of k-Class Estimators," Econometrica, Econometric Society, vol. 43(2), pages 327-346, March.
    19. Robert JARROW & Andrew RUDD, 2008. "Approximate Option Valuation For Arbitrary Stochastic Processes," World Scientific Book Chapters,in: Financial Derivatives Pricing Selected Works of Robert Jarrow, chapter 1, pages 9-31 World Scientific Publishing Co. Pte. Ltd..
    20. Gallant, A Ronald & Nychka, Douglas W, 1987. "Semi-nonparametric Maximum Likelihood Estimation," Econometrica, Econometric Society, vol. 55(2), pages 363-390, March.
    21. Bollerslev, Tim, 1987. "A Conditionally Heteroskedastic Time Series Model for Speculative Prices and Rates of Return," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 542-547, August.
    22. Robert Engle, 2001. "GARCH 101: The Use of ARCH/GARCH Models in Applied Econometrics," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 157-168, Fall.
    23. Christoffersen, Peter F, 1998. "Evaluating Interval Forecasts," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(4), pages 841-862, November.
    24. Leon, Angel & Rubio, Gonzalo & Serna, Gregorio, 2005. "Autoregresive conditional volatility, skewness and kurtosis," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(4-5), pages 599-618, September.
    25. Ignacio Mauleon & Javier Perote, 2000. "Testing densities with financial data: an empirical comparison of the Edgeworth-Sargan density to the Student's t," The European Journal of Finance, Taylor & Francis Journals, vol. 6(2), pages 225-239.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Catherine Benjamin & Ayal Kimhi, 2006. "Farm work, off-farm work, and hired farm labour: estimating a discrete-choice model of French farm couples' labour decisions," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(2), pages 149-171, June.
    2. repec:dau:papers:123456789/12203 is not listed on IDEAS
    3. Del Carpio, Ximena V. & Loayza, Norman V. & Wada, Tomoko, 2016. "The Impact of Conditional Cash Transfers on the Amount and Type of Child Labor," World Development, Elsevier, vol. 80(C), pages 33-47.
    4. Battese, George E. & Tessema, G.A., 1993. "Estimation of stochastic frontier production functions with time-varying parameters and technical efficiencies using panel data from Indian villages," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 9(4), December.
    5. Sonia Bhalotra & Christopher Heady, 2003. "Child Farm Labor: The Wealth Paradox," World Bank Economic Review, World Bank Group, vol. 17(2), pages 197-227, December.
    6. Ekbom, Anders & Alem, Yonas & Sterner, Thomas, 2013. "Integrating soil science into agricultural production frontiers," Environment and Development Economics, Cambridge University Press, vol. 18(03), pages 291-308, June.
    7. Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
    8. Abdulai, Awudu & Regmi, Punya Prasad, 2000. "Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal," Agricultural Economics, Blackwell, vol. 22(3), pages 309-320, April.
    9. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, "undated". "Key Issues in Agricultural Labour Markets: A Review of Major Studies and Project Reports on Agriculture and Rural Labour Markets," Factor Markets Working Papers 126, Centre for European Policy Studies.
    10. Glauben, Thomas & Henning, Christian H.C.A. & Henningsen, Arne, 2003. "Farm household decisions under various tax policies: Comparative static results and evidence from household data," FE Working Papers 0309, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    11. Gurgand, Marc, 2003. "Farmer education and the weather: evidence from Taiwan (1976-1992)," Journal of Development Economics, Elsevier, vol. 71(1), pages 51-70, June.
    12. Glauben, Thomas & Herzfeld, Thomas & Loy, Jens-Peter & Renner, Swetlana & Hockmann, Heinrich, 2012. "The impact of fiscal policies on agricultural household decisions," Economic Modelling, Elsevier, vol. 29(2), pages 166-177.
    13. Huu Chi Nguyen & Christophe Nordman, 2014. "Household entrepreneurship and social networks:panel data evidence from Vietnam," Working Papers DT/2014/22, DIAL (Développement, Institutions et Mondialisation).
    14. Del Carpio, Ximena V. & Loayza, Norman V., 2012. "The impact of wealth on the amount and quality of child labor," Policy Research Working Paper Series 5959, The World Bank.
    15. Delphine Boutin, 2012. "Family farming, child labour and the wealth paradox: evidence from Mali," Economics Bulletin, AccessEcon, vol. 32(4), pages 3471-3479.
    16. Chang, Yang-Ming & Huang, Biing-Wen & Chen, Yun-Ju, 2012. "Labor supply, income, and welfare of the farm household," Labour Economics, Elsevier, vol. 19(3), pages 427-437.
    17. Huu Chi Nguyen & Christophe Jalil Nordman, 2017. "Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam," Working Papers hal-01619799, HAL.
    18. repec:dau:papers:123456789/14463 is not listed on IDEAS
    19. Meike Wollni & Bernhard Brümmer, 2009. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 13, Courant Research Centre PEG.
    20. Henning, Christian H.C.A. & Henningsen, Arne, 2005. "Modeling Price Response of Farm Households Under Imperfect Labor Markets: A Farm Household Approach to Family Farms in Poland," 94th Seminar, April 9-10, 2005, Ashford, UK 24431, European Association of Agricultural Economists.
    21. M. Menon & F. Perali & F. Rosati, 2005. "The Shadow Wage of Child Labour: An Application to Nepal," UCW Working Paper 11, Understanding Children's Work (UCW Programme).
    22. Glauben, Thomas & Henning, Christian H.C.A., 2002. "Tax Policies And The Labor Market Constrained Farm Household: Theoretical Results And Empirical Evidence From Household Data," 2002 Annual meeting, July 28-31, Long Beach, CA 19700, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    23. Eduardo Ramírez & William Foster, 2003. "Análisis de la Oferta de Mano de Obra Familiar en la Agricultura Campesina," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(119), pages 89-110.
    24. Melmed-Sanjak, Jolyne & Santiago, Carlos E., 1996. "The household and employment in small-scale nonfarm enterprises," World Development, Elsevier, vol. 24(4), pages 749-764, April.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:obuest:v:49:y:1987:i:3:p:291-305. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.