Household production, time allocation, and welfare in Peru

John Dagsvik and Rolf Aaberge

No 503, Policy Research Working Paper Series from The World Bank

Abstract: This paper uses the Peruvian Living Standard Survey (PLSS) data to analyze: (a) inequality in the distribution of income; (b) labor market participation of men and women and the variations in hours of work; and (c) the relationship between variations in labor supply and income inequality. It uses a decomposing method to analyze income inequality and utilizes a structural neo-classical model to analyze household production, consumption, time allocation and welfare. The purpose is to study the effect on production, consumption, and time allocation of changes in education and wage rates. Most of the available information on economic inequality in developing countries refers to the distribution of income among earners. Although this information constitutes an important element for understanding the labor market and the related distribution of income, it is less helpful in the analysis of inequality as a welfare issue. A more relevant indicator of welfare is per capita household income or consumption. This paper uses this indicator in an analysis of economic inequality. The methodological approach is based on a summary measure of inequality which is closely related to the Gini coefficient. The essential difference is that the proposed measure of inequality gives more weight than the Gini coefficient to transfers related to the very poor.

Keywords: Economic Theory&Research; Inequality; Environmental Economics&Policies; Work&Working Conditions; Consumption (search for similar items in EconPapers)
Date: 1990-09-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... d/PDF/multi_page.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:wbk:wbrwps:503

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().