Supervision and Transaction Costs: Evidence from Rice Farms in Bicol, the Philippines

R.E. Evenson, A. Kimhi and Sanjaya Desilva ()

Working Papers from Yale - Economic Growth Center

Abstract: In this paper, we analyze supervision activities reported in a cross-section survey of rice farmers in the Bicol region of the Philippines. This survey is unique because it provides supervision data at the farm task level. We present a simple optimization model in which supervision intensity increases the productivity of hired workers, which is assumed to be lower than that of family members due to the transaction costs. The model predicts that supervision intensity will increase with transaction costs. We use different institutional conditions to proxy for transaction costs, and estimate the demand for supervision time for four different classes of rice production tasks. The estimation strategy controls for selectivity in both hiring and supervising. The results show a positive effect of transaction costs on supervision intensity.

Keywords: LABOUR MARKET; COSTS; SUPERVISORS (search for similar items in EconPapers)
JEL-codes: D23 J43 O13 Q12 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2000
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Citations: View citations in EconPapers (9)

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Related works:
Working Paper: SUPERVISION AND TRANSACTION COSTS: EVIDENCE FROM RICE FARMS IN BICOL, THE PHILIPPINES (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:yalegr:814

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