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Article
Publication date: 1 November 2011

Mauricio Reis

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.

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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

Journal of Economic Studies, vol. 38 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 3 July 2017

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

Agricultural Finance Review, vol. 77 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 5 May 2015

Yi Che, Yan Zhang and Linhui Yu

– The purpose of this paper is to examine key determinants of farm labor market development in rural China.

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

China Agricultural Economic Review, vol. 7 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 9 November 2015

Luba Petersen

– 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

Journal of Economic Studies, vol. 42 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 7 December 2015

Tony Muhumuza

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

African Journal of Economic and Management Studies, vol. 6 no. 4
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 26 October 2012

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

Journal of Agribusiness in Developing and Emerging Economies, vol. 2 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 30 August 2013

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.

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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

China Agricultural Economic Review, vol. 5 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 6 July 2010

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.

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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

International Journal of Social Economics, vol. 37 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 10 May 2013

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

China Finance Review International, vol. 3 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 16 March 2010

Akhtar Abdul Hai, Ambreen Fatima and Mahpara Sadaqat

The purpose of this paper is to explore the extent and the effect of socio‐economic and demographic factors that lead to the phenomenon of child labor in the fishing sector of…

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Abstract

Purpose

The purpose of this paper is to explore the extent and the effect of socio‐economic and demographic factors that lead to the phenomenon of child labor in the fishing sector of Balochistan (province of Pakistan).

Design/methodology/approach

In order to explore the objectives, the paper first develops simple hypothesis followed by descriptive and regression analysis.

Findings

The findings of the paper show that in the coastal areas about 30 percent of the children are involved in fishing. It is observed that the main cause of child labor is not poverty it comes out to be low quality of education, lack of job opportunity, and lack of development.

Research limitations/implications

The data used for the assessment cover wide‐spread coastal areas but still have some limitation for several reasons. First, it is rapid assessment done to gain the first hand knowledge about the extent of child labor and their socio‐economic culture they belong too. Second, the official data do not include information on education and employment facilities in these towns. Thus, severity may not be truly reflected.

Practical implications

Education with training needed to improve fishing skill may help in this regard. The state of education also needs improvement as high illiteracy and dropout rates reflect inadequacy.

Originality/value

Extent of child labor in these towns is not reported by any official statistics. This paper attempts to provide the picture of the severity of the problems and its probable causes.

Details

International Journal of Social Economics, vol. 37 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

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