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The Effects of Transaction Costs on Labor Market Participation and Earnings: Evidence from Rural Philippine Markets

Author

Listed:
  • Lanzona, L.A.
  • Evenson, R.E.

Abstract

The paper aims to measure transaction costs and its effects on labor market participation and on wage earnings. The observed differences between buying and sellin gprices of rice across households are used to calculate transaction costs indices for villages which are incorporated into the standard labor market participation and Mincer wage equations. The estimates indicate that transaction costs may be a source of the income differentials between (a) the landed and the landless, (b) the rural and the urban areas, and (c) the males and the females.

Suggested Citation

  • Lanzona, L.A. & Evenson, R.E., 1997. "The Effects of Transaction Costs on Labor Market Participation and Earnings: Evidence from Rural Philippine Markets," Papers 790, Yale - Economic Growth Center.
  • Handle: RePEc:fth:yalegr:790
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    Cited by:

    1. Evenson, R.E. & Kimhi, A. & DeSilva, S., 2000. "Supervision and Transaction Costs: Evidence from Rice Farms in Bicol, the Philippines," Papers 814, Yale - Economic Growth Center.

    More about this item

    Keywords

    LABOUR MARKET ; PHILIPPINES ; TRANSACTION COSTS;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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