Education, Labour Supply and Market Development in Rural Peru

Sonia Laszlo ()

Development and Comp Systems from EconWPA

Abstract: This paper examines the channels through which education affects household earnings in environments where wages are unobserved. Utilizing data from rural Peru, the empirical strategy decomposes the earnings returns to education into various wage-dependent and labour supply parameters. Geographic variation of market development inherent in the Peruvian Andes assists in the identification of unobserved wages. Results indicate that education affects earnings disproportionately more than hours, implying strong wage effects of education. This paper provides evidence that education gives rural households access to better, more lucrative, jobs characterized by fewer hours. This effect is more pronounced in more developed market environments.

Keywords: Returns to Education; Time Allocation; Economic Development (search for similar items in EconPapers)
JEL-codes: O P (search for similar items in EconPapers)
Date: 2003-12-17
Note: Type of Document - pdf; prepared on WinXP; to print on Dell Laser Printer p1500; pages: 44; figures: No
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Related works:
Journal Article: Education, Labor Supply, and Market Development in Rural Peru (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpdc:0312005

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