Modelling the efficiency of family and hired labour : illustrations from Nepalese agriculture

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Bibliographic Information

Modelling the efficiency of family and hired labour : illustrations from Nepalese agriculture

Prem Jung Thapa

Ashgate, c2003

Available at  / 10 libraries

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Note

Includes bibliographical references (p. 205-216) and index

Description and Table of Contents

Description

The principal economic units in most developing countries are family based farm households. Empirical models that recognize the dual role of the farm household as producer and consumer in a theoretically consistent manner are essential tools for policy analyses. This book provides an extension of the conventional farm household model by developing an analytical framework that allows for efficiency differences between family and hired labour as inputs in farm production. The model is estimated with survey data from the southern lowland region of Nepal. The estimation strategy is a two-step process. The first step estimates a farm-level production function in which is embedded a test for heterogeneity between family and hired labour. The labour heterogeneity detected in the production function estimation is incorporated, at the second step, in the labour supply estimation in a theoretically consistent manner. The methodological novelty is to relate the shadow wage rate for family labour to the observed market wage rate for hired labour, adjusted for the differential productivity of family and hired labour detected in the production function estimation.

Table of Contents

  • Introduction: Motivation
  • The research question
  • Estimation methodology
  • The setting
  • Chapter outline. Background and Literature Review: Background issues
  • Literature review
  • Summary. A Farm Household Model with Heterogeneous Labour Inputs: Introduction
  • Analytical structure of a model with heterogeneous labour
  • Aggregating labour inputs and production function separability
  • A farm household model with heterogeneous composite labour
  • Labour supply implications of heterogeneity
  • Summary. Estimation Strategy: General issues
  • The two step estimation strategy for a non-recursive model
  • A two step estimation strategy with heterogeneous labour
  • Error correction for the two step estimator
  • Summary. The Setting and The Data: The setting
  • The data set
  • Main variable definitions
  • Summary. Production Function Estimation Results and Tests for Labour Heterogeneity: Introduction
  • Data summary
  • Estimation and inference for farms using both family and hired labour
  • Testing for alternative aggregates of family and hired labour
  • Complete results for the linear composite labour model
  • Sensitivity analysis
  • Elasticities of substitution with a linear labour composite
  • Summary
  • Appendix 6: The translog specification with family and hired labour as independent inputs. Labour Supply Estimation Results: Introduction and motivation
  • Labour supply implications of linear heterogeneity
  • Data summary
  • Model specification and identification
  • Labour supply regression results: male family members
  • Labour supply regression results: female family members
  • Summary
  • Appendix 7: Complete labour supply regression results for selected model specifications. Summary and Conclusions: Overview
  • Summary of analytical results
  • Some implications
  • Suggestions for further research.

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