Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal
Year: 2000
Type: article
Study design: Observational Study
Abstract: This paper examines the labor supply of farm households in Nepal using a recently developed methodology that accounts for the simultaneity between production and consumption decisions of the households. Estimates of marginal products of male and female labor or shadow wages are obtained from an agricultural production function. An instrumental variable approach is then used to recover the household's structural labor supply from variations in the shadow wages and income, as well as other household characteristics. The findings reveal that both male and female total labor supply are sensitive to changes in shadow wages and income. Human capital embodied in education is found to exert a significant positive effect on output, but has no statistically significant impact on total labor supply of individuals. The results also rejects the existence of efficient labor markets in rural Nepal.
Source: Agricultural Economics
Authors: Awudu Abdulai, Punya Prasad Regmi
Institutions: ETH Zurich, Asian Institute of Technology
Language: English
Subfield: Gender Studies
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2103230653