IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Rural Household Labour Demand, Contract Choice, Hoarding Cost and Poverty: Evidence from Western Kenya

  • Gathungu, E.
  • Musyoka, M.P.
Registered author(s):

    This study determines the factors that influenced contract choice, labour demand and examines the existence of labour hoarding practice in Western region of Kenya. Data from Egerton University’s Tegemeo Institute of Agricultural Policy and Development was used for the analysis.. A two step Heckman model was employed to estimate the extent of engagement in daily and semi-permanent contracts conditional on choice of contract. Results from the study show that casual and semi-permanent contracts are substitutes. Family labour negatively influences engagement in daily and semi-permanent contracts hence it is a substitute to the two forms of the contracts. Increase in wages paid to casual contracts is negative and significant to the extent of daily contract engagement but positive and significant to semi-permanent contracts supporting the substitutability of daily contracts for semi-permanent contracts. Methods and costs of farm preparation are significant in influencing the choice and demand for any type of contracts. The proxy variable for hoarding costs is significant and positive indicating that there are hoarding costs incurred in the maintaining a steady pool of labour within the farm. From the results the relatively asset poor farmers engage in the wage high daily contracts to avoid incurring hoarding costs as indicated by the dummy denoting poverty level. However, to avoid uncertainty during peak periods semi-permanent contracts are highly employed by the asset poor farmers. From the results, farmers willing to minimize hoarding costs may find themselves substituting family labour for daily contracts or in absence of family labour, semi-permanent contracts for daily contracts.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://purl.umn.edu/52159
    Download Restriction: no

    Paper provided by African Association of Agricultural Economists (AAAE) in its series 2007 Second International Conference, August 20-22, 2007, Accra, Ghana with number 52159.

    as
    in new window

    Length:
    Date of creation: Nov 2008
    Date of revision:
    Handle: RePEc:ags:aaae07:52159
    Contact details of provider: Postal: c/o FORMAT, 5th Floor, Muthaiga Mini Market, Limuru Road, P.O. Box 79 - 00621 Village Market, Nairobi, Kenya
    Phone: 254 20 6752866
    Web page: http://www.aaae-africa.org
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
    2. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
    3. David Card, 1995. "The Wage Curve: A Review," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 285-299, June.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:aaae07:52159. 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: (AgEcon Search)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.