IDEAS home Printed from https://ideas.repec.org/p/ags/yaleeg/28499.html

The Micro-Economics of "Surplus Labor"

Author

Listed:
  • Ranis, Gustav

Abstract

This paper examines the apparent conflict between the classical assumption of a bargaining the context of a labor surplus developing economy. It concludes that the relatively inelastic supply of labor hours offered by low income small or landless farmers in the static microeconomic leisure/work context is perfectly consistent with the persistence for some time of an institutional real wage offered to the non-agricultural sector of the dual economy. Empirical evidence is brought to bear in support of that position.

Suggested Citation

  • Ranis, Gustav, 1997. "The Micro-Economics of "Surplus Labor"," Center Discussion Papers 28499, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:28499
    DOI: 10.22004/ag.econ.28499
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/28499/files/dp970772.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.28499?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rosenzweig, Mark R., 1988. "Labor markets in low-income countries," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 15, pages 713-762, Elsevier.
    2. Krishna, Raj, 1973. "Presidential Address- Unemployment in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 28(01), pages 1-24.
    3. Lau, Lawrence J & Lin, Wuu-Long & Yotopoulos, Pan A, 1978. "The Linear Logarithmic Expenditure System: An Application to Consumption-Leisure Choice," Econometrica, Econometric Society, vol. 46(4), pages 843-868, July.
    4. Hanson, James A, 1971. "Employment and Rural Wages in Egypt: A Reinterpretation," American Economic Review, American Economic Association, vol. 61(3), pages 492-499, June.
    5. Krishna, Raj, 1973. "Presidential Address: Unemployment in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 28(01), January.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Ernoiz Antriyandarti, 2017. "Impact of Surplus Labor Existence on Land Lease Market in Rural Central Java," GATR Journals jber133, Global Academy of Training and Research (GATR) Enterprise.
    2. Boggio, Luciano, 2009. "Long-run effects of low-wage countries' growing competitiveness and exports of manufactures," Structural Change and Economic Dynamics, Elsevier, vol. 20(1), pages 38-49, March.
    3. Haagh, Louise, 2011. "Working Life, Well-Being and Welfare Reform: Motivation and Institutions Revisited," World Development, Elsevier, vol. 39(3), pages 450-473, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gustav Ranis, 1997. "The Micro-Economics of 'Surplus Labor," Working Papers 772, Economic Growth Center, Yale University.
    2. Mohammed SHARIF, 2000. "Inverted “S”—The complete neoclassical labour-supply function," International Labour Review, International Labour Organization, vol. 139(4), pages 409-435, December.
    3. Ku, Hyejin, 2019. "The effect of wage subsidies on piece rate workers: Evidence from the Penny Per Pound program in Florida," Journal of Development Economics, Elsevier, vol. 139(C), pages 122-134.
    4. John Pencavel, 1996. "The Legal Framework for Collective Bargaining in Developing Economies," Working Papers 97008, Stanford University, Department of Economics.
    5. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    6. Thomas, Duncan & Strauss, John, 1997. "Health and wages: Evidence on men and women in urban Brazil," Journal of Econometrics, Elsevier, vol. 77(1), pages 159-185, March.
    7. Garrett, James L., 2004. "Living Life: overlooked aspects of urban employment," FCND Discussion Papers 60401, CGIAR, International Food Policy Research Institute (IFPRI).
    8. Ping Zong & John Davis, 1998. "Off‐Farm Employment and Grain Marketable Surplus in China," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 346-358, September.
    9. Raymond Riezman & Ping Wang & Eric Bond, 2015. "Urbanization and Economic Development: A Tale of Two Barriers," 2015 Meeting Papers 566, Society for Economic Dynamics.
    10. Jalan, Jyotsna & Ravallion, Martin, 2001. "Behavioral responses to risk in rural China," Journal of Development Economics, Elsevier, vol. 66(1), pages 23-49, October.
    11. Raymond Riezman & Ping Wang & Eric Bond, 2012. "Trade, Urbanization and Capital Accumulation in a Labor Surplus Economy," 2012 Meeting Papers 776, Society for Economic Dynamics.
    12. Barros, Geraldo Sant'Ana de Camargo & Catelo, Maria Angeles & Costales, Achilles & Delgado, Christopher L. & Mehta, Rajesh & Naranong, Viroj & Narrod, Clare A. & Poapongsakorn, Nipon & Sharma, Vijay P, 2008. "Determinants and implications of the growing scale of livestock farms in four fast-growing developing countries," Research reports 157, International Food Policy Research Institute (IFPRI).
    13. Akee, Randall K. Q., 2007. "Who Leaves and Who Returns? Deciphering Immigrant Self-Selection from a Developing Country," IZA Discussion Papers 3268, IZA Network @ LISER.
    14. Ranis, Gustav, 2012. "Labor Surplus Revisited," Center Discussion Papers 133411, Yale University, Economic Growth Center.
    15. Emily Breza & Supreet Kaur & Nandita Krishnaswamy, 2019. "Social Norms as a Determinant of Aggregate Labor Supply," NBER Working Papers 25880, National Bureau of Economic Research, Inc.
    16. Thorsten Beck, 2003. "Small and medium enterprises, growth, and poverty : cross-country evidence," Policy Research Working Paper Series 3178, The World Bank.
    17. Claudio ARAUJO & Catherine ARAUJO BONJEAN & Jean-Louis ARCAND, 1999. "Capital humain, productivité agricole, et travail féminin : variables latentes et séparabilité dans les modèles de ménage," Working Papers 199912, CERDI.
    18. Yamauchi, Futoshi, 2004. "Are experience and schooling complementary? Evidence from migrants' assimilation in the Bangkok labor market," Journal of Development Economics, Elsevier, vol. 74(2), pages 489-513, August.
    19. Thottappilly, Anna, 2021. "Identifying the Income Effect on Nutrition for Agricultural Households: Separability of Production and Consumption," 2021 Conference, August 17-31, 2021, Virtual 315335, International Association of Agricultural Economists.
    20. Ahmed, Mansur & Goodwin, Barry, 2016. "Agricultural Mechanization and Non-Farm Labor Supply of Farm Households: Evidence from Bangladesh," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236131, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    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:yaleeg:28499. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/egyalus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.