Estimation of Shadow Wage in Agricultural Household Model in Nepal

Atul Nepal and Carl Nelson ()

No 212527, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: In developing countries, where most of the families work on their own farms, wage or labor-related income cannot be observed directly. This paper contributes to the literature on gender wage difference in labor and development economics by developing a new approach to estimate the shadow wage of agricultural households in Nepal. Using a general functional form, we first derive the shadow wage from a theoretical model. Then, ward-level fixed effect is used to estimate the shadow wage by gender for Nepalese agricultural households. We find that productivity of women is higher at the mean, median and 75th quantile than that of men. Despite their higher productivity, females are underpaid at the mean and median in the labor market compared to their marginal productivity, calling for greater investments to involve female in the production process.

Keywords: Consumer/Household Economics; Financial Economics (search for similar items in EconPapers)
Pages: 20
Date: 2015
New Economics Papers: this item is included in nep-dem and nep-pke
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/212527/files/N ... hold%20model-901.pdf (application/pdf)

Related works:
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:ags:iaae15:212527

DOI: 10.22004/ag.econ.212527

Access Statistics for this paper

More papers in 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().