Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra

Hanan Jacoby

The Review of Economic Studies, 1993, vol. 60, issue 4, 903-921

Abstract: This paper develops a methodology for estimating structural time-allocation models for self-employed households and applies it to peasant family labour supply behaviour in the Peruvian Sierra. The opportunity costs of time, or shadow wages, of household workers are explicitly estimated from an agricultural production function. Using an instrumental variables procedure, the household's structural labour supply parameters are recovered from variation in these shadow wages. The empirical results are robust to a number of alternative specifications and diagnostic tests and lend support to the rational allocation of time by peasant households.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (225)

Downloads: (external link)
http://hdl.handle.net/10.2307/2298105 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: SHADOW WAGES AND PEASANT FAMILY LABOR SUPPLY; AN ECONOMETRIC APPLICATION TO THE PERUVIAN SIERRA (1990)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:60:y:1993:i:4:p:903-921.

Access Statistics for this article

The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman

More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().