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Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal

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  • Abdulai, Awudu
  • Regmi, Punya Prasad

Abstract

This paper examines the labor supply of farm households in Nepal using a recently developed methodology that accounts for the simultaneity between production and consumption decisions of the households. Estimates of marginal products of male and female labor or shadow wages are obtained from an agricultural production function. An instrumental variable approach is then used to recover the household's structural labor supply from variations in the shadow wages and income, as well as other household characteristics. The findings reveal that both male and female total labor supply are sensitive to changes in shadow wages and income. Human capital embodied in education is found to exert a significant positive effect on output, but has no statistically significant impact on total labor supply of individuals. The results also rejects the existence of efficient labor markets in rural Nepal. © 2000 Elsevier Science B.V. All rights reserved.
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  • 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.
  • Handle: RePEc:eee:agecon:v:22:y:2000:i:3:p:309-320
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    Cited by:

    1. Pieter Serneels, 2002. "The added worked effect and intra household aspects of unemployment," CSAE Working Paper Series 2002-14, Centre for the Study of African Economies, University of Oxford.
    2. Daniela Campus & Gianna Giannelli, 2016. "Is the Allocation of Time Gender Sensitive to Food Price Changes? An Investigation of Hours of Work in Uganda," Working Papers - Economics wp2016_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Bagamba, Fredrick & Burger, Kees & Kuyvenhoven, Arie, 2007. "Determinants of smallholder farmer labour allocation decisions in Uganda," 106th Seminar, October 25-27, 2007, Montpellier, France 7920, European Association of Agricultural Economists.
    4. Luca Tiberti & Marco Tiberti, 2015. "Rural Policies, Price Change and Poverty in Tanzania: An Agricultural Household Model-Based Assessment," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 24(2), pages 193-229.
    5. Abdulai, Awudu & CroleRees, Anna, 2001. "Determinants of income diversification amongst rural households in Southern Mali," Food Policy, Elsevier, vol. 26(4), pages 437-452, August.
    6. Chiara Del Bo & Carlo Fiorio & Massimo Florio, 2011. "Shadow Wages for the EU Regions," Fiscal Studies, Institute for Fiscal Studies, vol. 32(1), pages 109-143, March.
    7. Wassie Berhanu & David Colman & Bichaka Fayissa, 2007. "Diversification and livelihood sustainability in a semi-arid environment: A case study from southern Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 43(5), pages 871-889.
    8. Rakhshanda, Kousar & Awudu, Abdulai, 2013. "Impacts of rural non-farm employment on household welfare in Pakistan," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149890, Italian Association of Agricultural and Applied Economics (AIEAA).
    9. Linde-Rahr, Martin, 2001. "Rural Shadow Wages, Labour Supply And Agricultural Production Under Imperfect Markets: Empirical Evidence From Viet Nam," 2001 Annual meeting, August 5-8, Chicago, IL 20487, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Thapa, Sridhar, 2007. "The relationship between farm size and productivity: empirical evidence from the Nepalese mid-hills," 106th Seminar, October 25-27, 2007, Montpellier, France 7940, European Association of Agricultural Economists.
    11. Thapa, Sridhar, 2008. "Gender differentials in agricultural productivity: evidence from Nepalese household data," MPRA Paper 13722, University Library of Munich, Germany, revised Feb 2009.
    12. Terry Sicular & Yaohui Zhao, 2002. "Earnings and Labor Mobility in Rural China: Implications for China's WTO Entry," University of Western Ontario, Economic Policy Research Institute Working Papers 20028, University of Western Ontario, Economic Policy Research Institute.
    13. Martin Linde-Rahr, 2005. "Differences in agricultural returns: an empirical test of efficiency in factor input allocation using Vietnamese data," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 35-45, January.
    14. Shively, Gerald E. & Pagiola, Stefano, 2001. "Poverty, Agricultural Development, And The Environment: Evidence From A Frontier Region Of The Philippines," 2001 Annual meeting, August 5-8, Chicago, IL 20532, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Touhami Abdelkhalek & Fouzia Ejjanoui, 2015. "Tests De Séparabilité dans les Decisioins des Menages Agricoles: Cas du Maroc," Working Papers 955, Economic Research Forum, revised Oct 2015.

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