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Labor Complementarities and Health in the Agricultural Household

  • Achyuta Adhvaryu

    ()

    (MEPH Health Policy and Administration, Yale University)

  • Anant Nyshadham

    ()

    (Department of Economics, Yale University)

Registered author(s):

    Models of the agricultural household have traditionally relied on assumptions regarding the complementarity or substitutability of family labor inputs. We show how data on time allocations, health shocks and corresponding treatment choices can be used to test these assumptions. Data from Tanzania provide evidence that complementarities exist and can explain the pattern of labor supply adjustments across household members and productive activities following acute sickness. In particular, we find that sick and healthy household members both shift labor away from self-employment and into farming when the sick recover more quickly. Infra-marginal adjustments within farming activity types provide further evidence of farm-specific complementarities.

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    File URL: http://www.econ.yale.edu/growth_pdf/cdp996.pdf
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    Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 996.

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    Length: 57 pages
    Date of creation: Mar 2011
    Date of revision:
    Handle: RePEc:egc:wpaper:996
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    1. Harsha Thirumurthy & Joshua Graff Zivin & Markus Goldstein, 2007. "AIDS Treatment and Intrahousehold Resource Allocations: Children's Nutrition and Schooling in Kenya," Working Papers 105, Center for Global Development.
    2. Eric Edmonds, 2007. "Child Labor," Working Papers id:988, eSocialSciences.
    3. Baker, Michael & Benjamin, Dwayne, 1997. "The Role of the Family in Immigrants' Labor-Market Activity: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 87(4), pages 705-27, September.
    4. Paul J. Gertler & Luis Locay & Warren C. Sanderson, 1987. "Are User Fees Regressive? The Welfare Implications of Health Care Financing Proposals in Peru," NBER Working Papers 2299, National Bureau of Economic Research, Inc.
    5. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
    6. Kniesner, Thomas J, 1976. "An Indirect Test of Complementarity in a Family Labor Supply Model," Econometrica, Econometric Society, vol. 44(4), pages 651-69, July.
    7. Jacoby, Hanan G, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 903-21, October.
    8. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Labor Supply, Schooling and the Returns to Healthcare in Tanzania," Working Papers 995, Economic Growth Center, Yale University.
    9. Adhvaryu, Achyuta & Nyshadham, Anant, 2011. "Healthcare Choices, Information and Health Outcomes," Working Papers 88, Yale University, Department of Economics.
    10. Mette Ejrnæs & Claus C. Pörtner, 2004. "Birth Order and the Intrahousehold Allocation of Time and Education," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1008-1019, November.
    11. Wagstaff, Adam, 2005. "The economic consequences of health shocks," Policy Research Working Paper Series 3644, The World Bank.
    12. Stefan Dercon & Pramila Krishnan, 1997. "In sickness and in health... risk-sharing within households in rural Ethiopia," Economics Series Working Papers WPS/1997-12, University of Oxford, Department of Economics.
    13. Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, vol. 81(1), pages 80-96, October.
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