IDEAS home Printed from
   My bibliography  Save this paper

Estimation of Shadow Wage in Agricultural Household Model in Nepal


  • Nepal, Atul
  • Nelson, Carl


In developing countries, where most of the families work on their own farms, wage or labor-related income cannot be observed directly. This paper contributes to the literature on gender wage difference in labor and development economics by developing a new approach to estimate the shadow wage of agricultural households in Nepal. Using a general functional form, we first derive the shadow wage from a theoretical model. Then, ward-level fixed effect is used to estimate the shadow wage by gender for Nepalese agricultural households. We find that productivity of women is higher at the mean, median and 75th quantile than that of men. Despite their higher productivity, females are underpaid at the mean and median in the labor market compared to their marginal productivity, calling for greater investments to involve female in the production process.

Suggested Citation

  • Nepal, Atul & Nelson, Carl, 2015. "Estimation of Shadow Wage in Agricultural Household Model in Nepal," 2015 Conference, August 9-14, 2015, Milan, Italy 212527, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212527
    DOI: 10.22004/ag.econ.212527

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Consumer/Household Economics; Financial Economics;

    NEP fields

    This paper has been announced in the following NEP Reports:


    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:ags:iaae15:212527. 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). 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.