Rural Labor Markets, Household Composition, and Rainfall in Côte d’Ivoire

Franque Grimard

Review of Development Economics, 2000, vol. 4, issue 1, 70-86

Abstract: The complete‐markets hypothesis can be tested by examining whether the quantity of labor demanded by the farm is influenced by the farm’s household composition. There should be no influence if labor markets clear. This assumes, however, that household composition is fixed. This paper suggests that the composition of rural Ivorian households is endogenous by extending Benjamin’s approach (Econometrica, Vol. 60, 1992, 287–322) and considering that the household composition is simultaneously determined with the quantity of labor. If separation does not hold, variables such as rainfall that influence the labor demand will be related to the composition of household.

Date: 2000
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