IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/74318.html
   My bibliography  Save this paper

Fishing and non-fishing income decisions: the role of human capital and family structure

Author

Listed:
  • Eskander, Shaikh M.S.U.
  • Barbier, Edward B.
  • Gilbert, Ben

Abstract

Resource-dependent households often diversify their income. We model demand for remittances and supply of off-resource labor as a joint decision, and discuss household tradeoffs. We extend the off-farm labor supply literature to a rural fishery, contrasting our results to common findings in the farm literature and providing empirical evidence of the interdependence between education and family structure in determining income diversification. Using a unique dataset from Malaysia, we find that more educated households are less likely to diversify their income, with caveats depending on family composition. Policy implications for resource management in a remittance economy with alternative livelihoods are discussed.

Suggested Citation

  • Eskander, Shaikh M.S.U. & Barbier, Edward B. & Gilbert, Ben, 2018. "Fishing and non-fishing income decisions: the role of human capital and family structure," LSE Research Online Documents on Economics 74318, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:74318
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/74318/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Squires, Dale, 2016. "Firm behavior under quantity controls: The theory of virtual quantities," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 70-86.
    2. Huffman, Wallace E & Lange, Mark D, 1989. "Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 471-480, August.
    3. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    4. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    5. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    6. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    7. Dennis Tao Yang, 1997. "Education in Production: Measuring Labor Quality and Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 764-772.
    8. David A. Grigorian & Tigran A. Melkonyan, 2011. "Destined to Receive: The Impact of Remittances on Household Decisions in Armenia," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 139-153, February.
    9. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-178, May.
    10. J. Edward Taylor & Antonio Yunez-Naude, 2000. "The Returns from Schooling in a Diversified Rural Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 287-297.
    11. Huffman, Wallace E, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 14-23, February.
    12. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    13. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    14. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
    15. Awudu Abdulai & Wallace Huffman, 2014. "The Adoption and Impact of Soil and Water Conservation Technology: An Endogenous Switching Regression Application," Land Economics, University of Wisconsin Press, vol. 90(1), pages 26-43.
    16. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    17. Daniel A. Sumner, 1982. "The Off-Farm Labor Supply of Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(3), pages 499-509.
    18. Brian W. Gould & William E. Saupe, 1989. "Off-Farm Labor Market Entry and Exit," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 960-969.
    19. M. N. Asadullah & S. Rahman, 2009. "Farm productivity and efficiency in rural Bangladesh: the role of education revisited," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 17-33.
    20. McCormick, Barry & Wahba, Jackline, 2000. "Overseas Employment and Remittances to a Dual Economy," Economic Journal, Royal Economic Society, vol. 110(463), pages 509-534, April.
    21. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
    22. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
    23. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    24. Urvashi Narain & Shreekant Gupta & Klaas van ’t Veld, 2008. "Poverty and the Environment: Exploring the Relationship Between Household Incomes, Private Assets, and Natural Assets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 148-167.
    25. André Gröger & Yanos Zylberberg, 2016. "Internal Labor Migration as a Shock Coping Strategy: Evidence from a Typhoon," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 123-153, April.
    26. James Kirkley & Dale Squires & Ivar Strand, 1998. "Characterizing Managerial Skill and Technical Efficiency in a Fishery," Journal of Productivity Analysis, Springer, vol. 9(2), pages 145-160, March.
    27. Jørgen Carling, 2008. "The determinants of migrant remittances," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(3), pages 582-599, Autumn.
    28. Faini, Riccardo, 1994. "Workers Remittances and the Real Exchange Rate: A Quantitative Framework," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 235-245.
    29. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    30. Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 903-921.
    31. Yoshito Takasaki & Bradford L. Barham & Oliver T. Coomes, 2010. "Smoothing Income against Crop Flood Losses in Amazonia: Rain Forest or Rivers as a Safety Net?," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 48-63, February.
    32. Takasaki, Yoshito, 2011. "Do the Commons Help Augment Mutual Insurance Among the Poor?," World Development, Elsevier, vol. 39(3), pages 429-438, March.
    33. Coomes, Oliver T. & Barham, Bradford L. & Takasaki, Yoshito, 2004. "Targeting conservation-development initiatives in tropical forests: insights from analyses of rain forest use and economic reliance among Amazonian peasants," Ecological Economics, Elsevier, vol. 51(1-2), pages 47-64, November.
    34. Dustmann, Christian & Görlach, Joseph-Simon, 2016. "Estimating immigrant earnings profiles when migrations are temporary," Labour Economics, Elsevier, vol. 41(C), pages 1-8.
    35. Awudu Abdulai & Wallace E. Huffman, 2005. "The Diffusion of New Agricultural Technologies: The Case of Crossbred-Cow Technology in Tanzania," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 645-659.
    36. Wozniak, Gregory D, 1993. "Joint Information Acquisition and New Technology Adoption: Late versus Early Adoption," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 438-445, August.
    37. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    38. Ben Gilbert & Bee Hong Yeo, 2014. "Technological Change and Managerial Ability: Evidence from a Malaysian Artisanal Fishery," Land Economics, University of Wisconsin Press, vol. 90(2), pages 352-371.
    39. Wallace E. Huffman, 1974. "Decision Making: The Role of Education," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 85-97.
    40. Wozniak, Gregory D, 1984. "The Adoption of Interrelated Innovations: A Human Capital Approach," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 70-79, February.
    41. Hoddinott, John, 1994. "A Model of Migration and Remittances Applied to Western Kenya," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 459-476, July.
    42. Raúl Hernández-Coss & Gillian Brown & Chitrawati Buchori & Isaku Endo & Emiko Todoroki & Tita Naovalitha & Wameek Noor & Cynthia Mar, 2008. "The Malaysia-Indonesia Remittance Corridor : Making Formal Transfers the Best Option for Women and Undocumented Migrants," World Bank Publications - Books, The World Bank Group, number 6515.
    43. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," The World Bank Economic Review, World Bank, vol. 21(2), pages 219-248, May.
    44. Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2004. "Risk coping strategies in tropical forests: floods, illnesses, and resource extraction," Environment and Development Economics, Cambridge University Press, vol. 9(2), pages 203-224, May.
    45. 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.
    46. Gerald Shively & Monica Fisher, 2004. "Smallholder Labor and Deforestation: A Systems Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1361-1366.
    47. Corral, Leonardo & Reardon, Thomas, 2001. "Rural Nonfarm Incomes in Nicaragua," World Development, Elsevier, vol. 29(3), pages 427-442, March.
    48. Oded Stark, 1991. "The Migration of Labor," Blackwell Books, Wiley Blackwell, number 1557860300, April.
    49. World Bank, 2014. "Global Financial Development Report 2014 : Financial Inclusion," World Bank Publications - Books, The World Bank Group, number 16238.
    50. Barbier, Edward B., 2010. "Poverty, development, and environment," Environment and Development Economics, Cambridge University Press, vol. 15(6), pages 635-660, December.
    51. Awudu Abdulai & Christopher L. Delgado, 1999. "Determinants of Nonfarm Earnings of Farm-Based Husbands and Wives in Northern Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 117-130.
    52. Tim M Daw & Joshua E Cinner & Timothy R McClanahan & Katrina Brown & Selina M Stead & Nicholas A J Graham & Joseph Maina, 2012. "To Fish or Not to Fish: Factors at Multiple Scales Affecting Artisanal Fishers' Readiness to Exit a Declining Fishery," PLOS ONE, Public Library of Science, vol. 7(2), pages 1-10, February.
    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. Shaikh M. S. U. Eskander & Sam Fankhauser, 2022. "Income Diversification and Income Inequality: Household Responses to the 2013 Floods in Pakistan," Sustainability, MDPI, vol. 14(1), pages 1-12, January.
    2. Shaikh M. S. U. Eskander & Edward B. Barbier, 2023. "Adaptation to Natural Disasters through the Agricultural Land Rental Market: Evidence from Bangladesh," Land Economics, University of Wisconsin Press, vol. 99(1), pages 141-160.
    3. Avery Cole & Xuan Chen, 2021. "Off‐farm employment in aquaculture: A case study of New England's oyster growers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(3), pages 369-382, September.

    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. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
    2. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 13092.
    3. Timo Baas & Silvia Maja Melzer, 2012. "The Macroeconomic Impact of Remittances: A sending country perspective," Norface Discussion Paper Series 2012021, Norface Research Programme on Migration, Department of Economics, University College London.
    4. Giulia Bettin & Riccardo Lucchetti & Alberto Zazzaro, 2009. "Income, consumption and remittances: evidence from immigrants to Australia," Mo.Fi.R. Working Papers 34, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    5. Meyer, Wiebke, 2012. "Motives for remitting from Germany to Kosovo," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 69, number 69.
    6. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    7. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    8. Filiz Garip, 2012. "An Integrated Analysis of Migration and Remittances: Modeling Migration as a Mechanism for Selection," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 31(5), pages 637-663, October.
    9. Mathias Sinning, 2011. "Determinants of savings and remittances: empirical evidence from immigrants to Germany," Review of Economics of the Household, Springer, vol. 9(1), pages 45-67, March.
    10. Giulia Bettin & Riccardo Lucchetti & Claudia Pigini, 2016. "State dependence and unobserved heterogeneity in a double hurdle model for remittances: evidence from immigrants to Germany," Mo.Fi.R. Working Papers 127, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    11. Giulia Bettin & Riccardo Lucchetti, 2016. "Steady streams and sudden bursts: persistence patterns in remittance decisions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 263-292, January.
    12. Giulia Bettin & Andrea F. Presbitero & Nikola L. Spatafora, 2017. "Remittances and Vulnerability in Developing Countries," The World Bank Economic Review, World Bank, vol. 31(1), pages 1-23.
    13. Laurent Bossavie & Çağlar Özden, 2023. "Impacts of Temporary Migration on Development in Origin Countries," The World Bank Research Observer, World Bank, vol. 38(2), pages 249-294.
    14. Yalei Zhai & Hisaki Kono, 2021. "The poor receive less: Remittance behaviour of female migrants in Myanmar," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 910-926, July.
    15. Pascual, Unai & Barbier, Edward B., 2005. "On- And Off-Farm Labor Decisions By Slash-And-Burn Farmers In Yucatan (Mexico)," Environmental Economy and Policy Research Discussion Papers 31926, University of Cambridge, Department of Land Economy.
    16. Bhaumik, Sumon K. & Dimova, Ralitza & Nugent, Jeffrey B., 2006. "Pulls, Pushes and Entitlement Failures in Labor Markets: Does the State of Development Matter?," IZA Discussion Papers 2258, Institute of Labor Economics (IZA).
    17. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2014. "What drives bilateral remittances to Pakistan? A gravity model approach," University of Göttingen Working Papers in Economics 209, University of Goettingen, Department of Economics.
    18. Stefanija Veljanoska, 2022. "Do Remittances Promote Fertilizer Use? The Case of Ugandan Farmers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 273-293, January.
    19. Matthieu Delpierre & Bertrand Verheyden, 2014. "Remittances, savings and return migration under uncertainty," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-43, December.
    20. Francesca Marchetta, 2008. "Migration and non farm activities as income diversification strategies: the case of Northern Ghana," Working Papers - Economics wp2008_16.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ehl:lserod:74318. 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: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.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.