This paper aims to investigate whether shocks to the health of a self‐employed worker in Brazil increase the labour supply of other household members.
Abstract
Purpose
This paper aims to investigate whether shocks to the health of a self‐employed worker in Brazil increase the labour supply of other household members.
Design/methodology/approach
Using data from the Brazilian National Household Survey, this paper investigates whether the probability of other household members entering the labour force increases as a reaction to a decrease in income caused by the absence from work due to health problems of a head of household who is self‐employed.
Findings
The empirical evidence indicates that absence of the head of household from work due to health problems seems to increase the probability of other household members entering the labour force.
Originality/value
The paper provides evidence regarding the consequences of negative shocks to the health of self‐employed workers on households' labour supply decisions in Brazil.
Details
Keywords
Women perform the majority of household labour in many families around the world. However, the unequal division of household labour does not lead to dissatisfaction among women…
Abstract
Women perform the majority of household labour in many families around the world. However, the unequal division of household labour does not lead to dissatisfaction among women. In the present study, the author introduced the intergenerational household assistance to understand married women’s and men’s satisfaction with division of household labour in China, in addition to three major theoretical perspectives in studies of western families (i.e., relative resources, time availability, and gender role ideology). Logistic regression analyses on a nationally representative dataset (the Second Wave Survey of Chinese Women’s Social Status) were performed to study this topic. Consistent with studies in the West, the results show that relative resources, time availability, and gender ideology were associated with married Chinese women’s satisfaction, while married Chinese men’s satisfaction was only associated with time availability (the household labour done by them and their wives). Importantly, married women with parents-in-law’s household assistance tend to be more satisfied than those with help from their parents. The findings demonstrate that Chinese marriages are intertwined with intergenerational relationships and suggest that it is important to take into account of the influence of intergenerational relationships in studies of Chinese marriages.
Details
Keywords
Mohamed Porgo, John K.M. Kuwornu, Pam Zahonogo, John Baptist D. Jatoe and Irene S. Egyir
Credit is central in labour allocation decisions in smallholder agriculture in developing countries. The purpose of this paper is to analyse the effect of credit constraints on…
Abstract
Purpose
Credit is central in labour allocation decisions in smallholder agriculture in developing countries. The purpose of this paper is to analyse the effect of credit constraints on farm households’ labour allocation decisions in rural Burkina Faso.
Design/methodology/approach
The study used a direct elicitation approach of credit constraints and applied a farm household model to categorize households into four labour market participation regimes. A joint estimation of both the multinomial logit model and probit model was applied on survey data from Burkina Faso to assess the effect of credit constraint on the probability of choosing one of the four alternatives.
Findings
The results of the probit model showed that households’ endowment of livestock, access to news, and membership to an farmer-based organization were factors lowering the probability of being credit constrained in rural Burkina Faso. The multinomial logit model results showed that credit constraints negatively influenced the likelihood of a farm household to use hired labour in agricultural production and perhaps more importantly it induces farm households to hire out labour off farm. The results also showed that the other components of household characteristics and farm attributes are important factors determining the relative probability of selecting a particular labour market participation regime.
Social implications
Facilitating access to credit in rural Burkina Faso can encourage farm households to use hired labour in agricultural production and thereby positively impacting farm productivity and relieving unemployment pressures.
Originality/value
In order to identify the effect of credit constraints on farm households’ labour decisions, this study examined farm households’ decisions of hiring on-farm labour, supplying labour off-farm or simultaneously hiring on-farm labour and supplying family labour off-farm under credit constraints using the direct elicitation approach of credit constraints. To the best of the authors’ knowledge, this study is the first to examine this problem in Burkina Faso.
Details
Keywords
Abstract
Purpose
The purpose of this paper is to examine key determinants of farm labor market development in rural China.
Design/methodology/approach
Probit, Logit, and IV-Probit model are used to provide pertinent empirical analysis.
Findings
Analysis of survey data establishes three facts about the farm labor market in rural China: first, households with high farm endowment are more likely to hire farm labor; second, because of the mismatch between farm ability and land size created by egalitarian land reallocation, households with more land reallocations are more likely to participate in farm labor market to adjust such mismatch; third, land rental market and farm labor market seem to be complementary. These results are robust to alternative model specifications, subsamples, alternative dependent variables, and additional controls. Welfare analysis demonstrates that the farm labor market is conducive to agricultural output.
Originality/value
The main contribution of this study is to lay out stylized facts in terms of the development of farm labor market using a unique survey data set.
Details
Keywords
Mustafa Utku Özmen and Belgi Turan
This paper investigates the impact of quasi-exogenous and substantial increases in the minimum wage on child labor outcomes in Türkiye. The study aims to provide empirical…
Abstract
Purpose
This paper investigates the impact of quasi-exogenous and substantial increases in the minimum wage on child labor outcomes in Türkiye. The study aims to provide empirical evidence on how minimum wage policies affect child labor outcomes in a developing country context, with a focus on gender and age differences. It seeks to understand whether minimum wage increases lead to a reduction in child labor and whether the impact is different for various demographic groups.
Design/methodology/approach
The research employs a difference-in-differences methodology using data from the 2012 and 2019 Child Labor Force Survey in Türkiye. The treatment group consists of children from households with minimum wage earners, while the control group comprises children from other households. Various labor market outcomes are analyzed, and robustness checks are performed.
Findings
Our findings indicate that while the overall effect of minimum wage increases on child labor is statistically insignificant, there are notable heterogeneous impacts across different demographic groups and employment sectors. Specifically, we observe a significant reduction in the employment probability of girls under the age of 15 and unpaid family workers. Additionally, the likelihood of younger children being wage earners decreases, and the minimum wage increase reduces employment in the agriculture and services sectors for certain subgroups. The impact is also more limited for children in single-adult-worker households.
Social implications
These results underscore the varying effects of minimum wage policies on child labor and highlight the importance of considering demographic and sectoral differences in policy formulation. Policymakers should complement such policies with income-generating programs and targeted education initiatives to address child labor issues more comprehensively and sustainably.
Originality/value
This study fills a critical gap in the limited international literature on the causal effects of minimum wage policies on child labor incidence. One notable exception, Menon and van der Meulen Rodgers (2018) have explored the impact of minimum wage on child labor in India using regional variation, our study uniquely analyzes the effects at the household level in Türkiye. This approach provides valuable insights into how minimum wage changes affect child labor outcomes in a developing economy context with a high prevalence of minimum wage earners. It also contributes to the broader economic understanding of child labor and household income dynamics.
Details
Keywords
This paper explores the rural labor market impact of migration in China using cross-sectional data on rural households for the year 2007. A switching probit model is used to…
Abstract
This paper explores the rural labor market impact of migration in China using cross-sectional data on rural households for the year 2007. A switching probit model is used to estimate the impact of belonging to a migrant-sending household on the individual occupational choice categorized in four binary decisions: farm work, wage work, self-employment, and housework. The paper then goes on to estimate how the impact of migration differs across different types of migrant households identified along two additional lines: remittances and migration history. Results show that individual occupational choice in rural China is responsive to migration, at both the individual and the family levels, but the impacts differ: individual migration experience favors subsequent local off-farm work, whereas at the family level, migration drives the left-behinds to farming rather than to off-farm activities. Our results also point to the interplay of various channels through which migration influences rural employment patterns.
Details
Keywords
Tekalign Gutu Sakketa and Nicolas Gerber
Within the framework of potential efforts and strategies to employment generation for young people in Africa in general and Ethiopia in particular, the agricultural sector is…
Abstract
Within the framework of potential efforts and strategies to employment generation for young people in Africa in general and Ethiopia in particular, the agricultural sector is increasingly considered as an important sector and a valuable means for poverty reduction, the promotion of economic development, and youth's economic independence. Renewed hope is placed on the sector to offer sustainable livelihood prospects for the rural youth. Yet, the success and sustainability of the sector require a proper understanding of how households allocate youth labor time in the sector and whether agricultural labor supply is responsive to economic incentives such as shadow wages. Using gender- and age-specific plot-level panel data, we systematically analyze the impacts of shadow wages of each household member on youth agricultural labor supply across types of farms. The results indicate that agricultural shadow wages matter for the youth's labor supply in the sector, but the impact differs for male and female youth. We also show that trends and patterns of youth labor supply vary across gender and whether they work on their own farm, and so do their labor returns. The results are consistent after controlling for individual heterogeneity and instrumenting for possible endogeneity. Taking into account the intensity of youth's actual involvement in the family farm, own farm or off-farm work instead of their stated intentions, the results challenge the presumption that youth are abandoning agriculture, at least in agricultural potential areas of Ethiopia. Instead, the frequent narrative of youth disengaging from agriculture may be a result of methodological flaws or data limitations. The findings suggest that it is necessary to invest in agricultural development to enhance labor productivity and employability of young people in agriculture.
Details
Keywords
The expansion of the European Union into southern Europe calls for a re-examination of the anthropological analysis of rural Greek society. This chapter examines some of the…
Abstract
The expansion of the European Union into southern Europe calls for a re-examination of the anthropological analysis of rural Greek society. This chapter examines some of the changes that have affected rural households in the Argolida region of Greece, and how households have adapted. It is argued that the household continues to be an important site for constructing relations of production. However, there has been a significant shift from forms of stratification and exploitation based on gender, kinship and patronage to new forms based on nationality and ethnicity. The dependence of households on (mostly illegal) immigrant labor has both subsidized their rising standard of living and trapped them in a new regime of social inequality.
– The purpose of this paper is to explore the ability of monetary policy to generate real effects in laboratory general equilibrium production economies.
Abstract
Purpose
The purpose of this paper is to explore the ability of monetary policy to generate real effects in laboratory general equilibrium production economies.
Design/methodology/approach
To understand why monetary policy is not consistently effective at stabilizing economic activity, the author vary the types of agents interacting in the economy and consider treatments where subjects are playing the role of households (firms) in an economy where automated firms (households) are programmed to behave rationally.
Findings
While the majority of participants’ expectations respond to monetary policy in the direction intended, subjects do form expectations adaptively, relying heavily on past variables and forecasts in forming two-steps-ahead forecasts. Moreover, in the presence of counterparts that are boundedly rational, forecast accuracy worsens significantly. When interacting with automated households, updating firms’ prices respond modestly to monetary policy and significantly to anticipated marginal costs and future prices. The greatest deviations in behavior from theoretical predictions arise from human households (HH). Households persistent oversupply of labor and under-consumption is attributed to precautionary saving and debt aversion. The results provide evidence that the effects of monetary policy on decision making hinge on the distribution of indebtedness of households.
Originality/value
The author present causal evidence of the effects of potential bounded rationality on agents’ consumption and labor decisions.
Details
Keywords
The purpose of this paper is to analyze the relationship between access to rural product markets and the extent and nature of child labor. It is built on the view that if physical…
Abstract
Purpose
The purpose of this paper is to analyze the relationship between access to rural product markets and the extent and nature of child labor. It is built on the view that if physical markets can shape rural development through, for instance, influencing prices, household production decisions, and employment, the associated activity growth could increase child labor.
Design/methodology/approach
Using the Uganda National Household Survey, the author combines two methodological approaches: first, a probit model to estimate the probability of a child engaging in labor, and second, a double-hurdle model to analyze the hours of child work.
Findings
The author finds that children increase time in domestic work when local product markets are distant, while their time in economic activity declines. A similar pattern is observed for the incidence of child labor. The likelihood of child labor in domestic activity increases for each extra hour of travel to the market, while child labor in economic activity declines. This could reflect the possibility that households may switch child work from market-oriented activities to domestic work when they are remotely located from markets. Results confirm findings from earlier cross-country studies that access to product markets may be detrimental to children. Second, they demonstrate that the effect of the markets varies, depending on the age of children, as well as the nature of the work they engage in.
Originality/value
No part of this work has been published anywhere before.
Details
Keywords
Nicholas E. Rada, Chenggang Wang and Lijian Qin
The present article presents a first‐look into the hired‐labor market in Chinese household farms using data from a national household survey conducted by the Research Center for…
Abstract
Purpose
The present article presents a first‐look into the hired‐labor market in Chinese household farms using data from a national household survey conducted by the Research Center for the Rural Economy (RCRE) at China's Ministry of Agriculture. More specifically, the purpose of this paper is to evaluate the scale and dispersion of China's farm‐household hired laborers among 15 commodities, and test whether market factors influence labor‐hiring decisions – an expectation of a well‐functioning labor market. This research contributes to the literature concerned with the labor constraints facing Chinese household farms, especially those producing seasonal commodities.
Design/methodology/approach
An econometric approach is employed to assess whether Chinese farms that hire labor are responding to market factors using two repeated cross‐sections (2006, 2007) of household survey data collected by the Research Center for Rural Economy at China's Ministry of Agriculture.
Findings
The paper finds hired labor use on very small‐scale farms is surprisingly prevalent, in contrast to previously published data. The regression results suggest that labor hiring by Chinese farm households, irrespective of farm size, responds strongly to market signals and resource constraints – more labor will be hired when the wage is lower, when output is higher, and among families with fewer family members available to farm work. And the response is particularly robust for wheat, rice, and maize, whose prices are predominant determinants of the food price index.
Research limitations/implications
This paper is limited in its time‐series dimension and data availability. Despite those limitations, the results hold implications for further understanding China's nascent labor market and the level to which market factors have impacted rural farm households.
Originality/value
Focusing on the as‐of‐yet unstudied market for hired labor on Chinese household farms, the present article makes a contribution by showing that hiring of labor in Chinese agriculture is much more prevalent than previously thought. It suggests that Chinese farm‐households are responding to certain labor‐market factors and that the household response does not weaken as the largest farms are omitted from the model, suggesting that even small farms are heeding market signals.
Details
Keywords
Min Li and Terry Sicular
The purpose of this paper is to analyze the extent of aging in the agricultural labor force and its effect on farm production in a province of China.
Abstract
Purpose
The purpose of this paper is to analyze the extent of aging in the agricultural labor force and its effect on farm production in a province of China.
Design/methodology/approach
The analysis uses panel data for the years 2004 through 2008 from a representative sample of farm households in Liaoning province. Descriptive statistics reveal the age structure of the agricultural labor force and correlations between labor force age and production characteristics. A translog stochastic frontier production function and technical inefficiency model is employed to analyze the effect of aging of the labor force on the technical efficiency of crop production.
Findings
The paper finds an accelerating trend towards aging of the agricultural labor force in the data. Results from the stochastic frontier production function and efficiency analysis reveal that household‐level technical efficiency increases until maximum efficiency is reached when the average age of the household labor force is 45, after which efficiency declines.
Practical implications
Aging of China's rural labor force may affect efficiency and productivity in crop production. Agricultural policies may need to pay more attention to the aging of the agricultural labor force. Some measures should be taken to address the pattern of migration, and policies to improve the social and economic environment in rural areas for younger workers should be developed. Also, extension programs could help older farmers to maintain efficient farming methods.
Originality/value
This is one of very few analyses of the effects of aging on production efficiency for a developing country, as well as for China. The analysis uses a unique panel dataset that covers 24 counties, 1,890 rural households, and more than 6,000 individuals, with each household tracked for five years. Most of the literature estimating technical efficiency carries out the analysis at the individual level; in China and other developing countries, farming is carried out at the household level. We have adapted the methodology to apply to situations where the unit of analysis is the household.
Details
Keywords
Toseef Azid, Rana Ejaz Ali Khan and Adnan M.S. Alamasi
The purpose of this paper is to highlight the factors that influence the decision of married women (in the age group of 16‐60 years) to participate in labor force activities.
Abstract
Purpose
The purpose of this paper is to highlight the factors that influence the decision of married women (in the age group of 16‐60 years) to participate in labor force activities.
Design/methodology/approach
This is an empirical study employing the non‐linear maximum likelihood probability (probit) function on primary data (3,911 observations).
Findings
Besides other variables it has been observed that poverty remains an important determinant of female labor participation.
Research limitations/implications
On the basis of this paper, a socio‐economic policy can be formulated for a developing country like Pakistan.
Practical implications
A development policy (especially considering the gender aspects) can be formulated on the basis of this research for the enhancement of human resource development for a developing and an orthodox economy like Pakistan.
Originality/value
This paper is beneficial to researchers, policy makers, and social scientists for the enhancement of the level of social welfare and equity through its findings.
Details
Keywords
Mingchao Cai, Jun Zhao, Rulu Pan and Haozhi Huang
The purpose of this paper is to empirically analyze the relationship between risky asset allocation and background risk of Chinese residents.
Abstract
Purpose
The purpose of this paper is to empirically analyze the relationship between risky asset allocation and background risk of Chinese residents.
Design/methodology/approach
Using Chinese macroeconomic data, this study uses numerical method to solve dynamic stochastic optimal problem.
Findings
When risk of labor income is considered, ratio of risky asset declines with rising of age for those people with same age and wealth state; any of the following situations will lead to lower risky assets holdings: lower labor income growth expectations, higher labor income risk or higher labor and financial market covariance risk.
Research limitations/implications
This study uses real economy investment return as a proxy of risky asset return.
Practical implications
Residents with higher background risks should hold less risky assets, and overcome home‐bias problem during asset allocation.
Originality/value
This study takes two kinds of background risk into consideration: labor income risk, and covariance between labor income and risk asset.
Details
Keywords
We investigate the reasons why income inequality is so high in Spain in the EU context. We first show that the differential in inequality with Germany and other countries is…
Abstract
We investigate the reasons why income inequality is so high in Spain in the EU context. We first show that the differential in inequality with Germany and other countries is driven by inequality among households who participate in the labor market. Then, we conduct an analysis of different household income aggregates. We also decompose the inter-country gap in inequality into characteristics and coefficients effects using regressions of the Recentered Influence Function for the Gini index. Our results show that the higher inequality observed in Spain is largely associated with lower employment rates, higher incidence of self-employment, lower attained education, as well as the recent increase in the immigration of economically active households. However, the prevalence of extended families in Spain contributes to reducing inequality by diversifying income sources, with retirement pensions playing an important role. Finally, by comparing the situations in 2008 and 2012, we separate the direct effects of the Great Recession on employment and unemployment benefits, from other more permanent factors (such as the weak redistributive effect of taxes and family or housing allowances, or the roles of education and the extended family).
Details
Keywords
Luca Flabbi, James Mabli and Mauricio Salazar
This paper provides household lifetime inequality indexes derived from representative U.S. labor market data. We obtain this result by using estimates of the household search…
Abstract
This paper provides household lifetime inequality indexes derived from representative U.S. labor market data. We obtain this result by using estimates of the household search model proposed by Flabbi and Mabli (2012). Inequality indexes computed on the benchmark model shows that inequality in utility values is substantially different from inequality in earnings and wages and that inequality at the cross-sectional level is significantly different from inequality at the lifetime level. Both results deliver original policy implications that would have not been captured without using our approach. In particular, we find that a counterfactual policy experiment consisting in a mean-preserving spread of the wage offers distributions increases lifetime inequality in wages and earnings but not in utility. When comparing inequality at the individual level between men and women, we find inequality in wages and earnings to be higher for husbands than wives but inequality in utility to be higher for wives. A counterfactual decomposition shows that the job offers parameters are the main source of the gender differential.
Details
Keywords
Ximena V. Del Carpio and Karen Macours
This chapter analyzes changes in the allocation of child labor within the household in reaction to exogenous shocks created by a social program in Nicaragua. The chapter shows…
Abstract
This chapter analyzes changes in the allocation of child labor within the household in reaction to exogenous shocks created by a social program in Nicaragua. The chapter shows that households that randomly received a conditional cash transfer (CCT) compensated for some of the intra-household differences, as they reduce child labor more for older boys who used to work more and for boys who were further behind in school. The results also show that households that randomly received a productive investment grant targeted at women, in addition to the basic CCT benefits, show an increased specialization of older girls in nonagricultural and domestic work, but no overall increase in girls’ child labor. The findings suggest that time allocation and specialization patterns in child labor within the household are important factors to understand the impact of a social program.
Matthias Cinyabuguma, William Lord and Christelle Viauroux
This paper addresses revolutionary changes in the education, fertility and market work of U.S. families formed in the 1870s–1920s: Fertility fell from 5.3 to 2.6; the graduation…
Abstract
This paper addresses revolutionary changes in the education, fertility and market work of U.S. families formed in the 1870s–1920s: Fertility fell from 5.3 to 2.6; the graduation rate of their children increased from 7% to 50%; and the fraction of adulthood wives devoted to market-oriented work increased from 7% to 23% (by one measure).
These trends are addressed within a unified framework to examine the ability of several proposed mechanisms to quantitatively replicate these changes. Based on careful calibration, the choices of successive generations of representative husband-and-wife households over the quantity and quality of their children, household production, and the extent of mother’s involvement in market-oriented production are simulated.
Rising wages, declining mortality, a declining gender wage gap, and increased efficiency and public provision of schooling cannot, individually or in combination, reduce fertility or increase stocks of human capital to levels seen in the data. The best fit of the model to the data also involves: (1) a decreased tendency among parents to view potential earnings of children as the property of parents and (2) rising consumption shares per dependent child.
Greater attention should be given the determinants of parental control of the work and earnings of children for this period.
One contribution is the gathering of information and strategies necessary to establish an initial baseline, and the time paths for parameters and targets for this period beset with data limitations. A second contribution is identifying the contributions of various mechanisms toward reaching those calibration targets.
Details
Keywords
Isaac Sitienei, Ashok K. Mishra and Aditya R. Khanal
To determine the factors that motivate rural households to supply ganyu labor and to estimate its impact on food security.
Abstract
Purpose
To determine the factors that motivate rural households to supply ganyu labor and to estimate its impact on food security.
Methodology/approach
Data from the 2010/2011 Malawi household survey were used. A probit model to evaluate the determinants of ganyu labor supply and a propensity score-matching estimator to assess its impact on food security were used.
Findings
Less educated males are more likely to supply ganyu labor. Ganyu labor supply increases with household size, while it decreases with the level of crop farming and size of land owned. Results from the average treatment effect indicate a positive and significant impact of ganyu labor participation on the number of meals consumed per day.
Practical implications
Ganyu labor participants in Malawi have better access to food as a result of cash income from ganyu. Government support mechanisms such as minimum wage regulations should consider the welfare of ganyu labor participants.