Labour Allocation

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Innocent Matshe - One of the best experts on this subject based on the ideXlab platform.

  • off farm Labour Allocation decisions in small scale rural households in zimbabwe
    Agricultural Economics, 2004
    Co-Authors: Innocent Matshe, Trevor Young
    Abstract:

    The double hurdle model is used to analyse the off-farm Labour decisions of small-scale agricultural household members in the Shamva District of Zimbabwe. The approach permits the joint modelling of the decision to participate in the Labour market and the decision regarding the amount of time allocated to work. Results indicate that a number of variables (notably, gender, education and assets) indeed have effects which are qualitatively and quantitatively different in terms of participation and hours worked. Overall, the empirical analysis confirms the importance of individual characteristics (such as gender and education) and household/farm characteristics (e.g. land area accessible to the household, productive assets, remittances and the agricultural terms of trade) in influencing the Labour market decisions of rural household members.

  • Off‐farm Labour Allocation decisions in small‐scale rural households in Zimbabwe
    Agricultural Economics, 2004
    Co-Authors: Innocent Matshe, Trevor Young
    Abstract:

    The double hurdle model is used to analyse the off-farm Labour decisions of small-scale agricultural household members in the Shamva District of Zimbabwe. The approach permits the joint modelling of the decision to participate in the Labour market and the decision regarding the amount of time allocated to work. Results indicate that a number of variables (notably, gender, education and assets) indeed have effects which are qualitatively and quantitatively different in terms of participation and hours worked. Overall, the empirical analysis confirms the importance of individual characteristics (such as gender and education) and household/farm characteristics (e.g. land area accessible to the household, productive assets, remittances and the agricultural terms of trade) in influencing the Labour market decisions of rural household members.

  • Labour Allocation in smallholder agriculture in the Shamva District: a household economic approach
    1998
    Co-Authors: Innocent Matshe
    Abstract:

    A research paper on how division of Labour is allocated in small-scale rural farming plots in Zimbabwe.

Marwan Benali - One of the best experts on this subject based on the ideXlab platform.

  • Export vegetable supply chains, household Labour Allocation and poverty effects among small producers – Evidence from Northern Tanzania
    2018
    Co-Authors: Marwan Benali
    Abstract:

    Throughout the past years, global agri-food systems have been deeply evolving with the rise and consolidation of modern supply chains. The emergence and increasing role played by these modern supply chains have been prompted by, among others, the growth and increasing domination of supermarkets and retailers as well as an increase of the demand in the developed countries for fresh and healthy products such as fruits and vegetables. This has in turn favoured the expansion of global trade of these high-value agricultural products and in particular their exports from developing countries to developed countries. These modern export supply chains are different than the traditional supply chains in the sense that they are more concentrated, follow a strong vertical coordination pattern with a domination of the aforementioned retailers and are regulated by more stringent quality standards and requirements. A comparable process has also taken place with the emergence of domestic modern supply chains and the rise of supermarkets in developing countries. These changes have important consequences in terms of agricultural and rural development for developing countries. Indeed, some of the small producers who are not able to comply with these supply chains requirements may no longer be able to participate in the latter and thus be excluded, which could affect their livelihoods. However, in many cases small producers have eventually not systematically been excluded from these modern supply chains and have managed to participate in the latter as suppliers, including through contract farming schemes and other types of supplying arrangements. The implications and development effects for these small producers supplying their produce to modern supply chains have been of interest and analysed by the literature, in particular in terms of Labour and employment generation as well as poverty reduction. Yet, some related research areas remain unaddressed. First, with regard to the Labour market effects, evidence from the literature shows that small producer participation in modern supply chains, in particular when it comes to horticultural products, can generate employment opportunities, via an increased on-farm casual Labour demand, benefitting in particular women. Building on the literature on rural household Labour Allocation decision process and the concept of non-separability, one could expect that participation in modern export supply chains may potentially affect the Labour Allocation of participating households, i.e. both their on-farm hired Labour demand and off-farm Labour supply decisions. This specific aspect has not yet been entirely covered by research in this area since little is known about whether and how this Labour Allocation process in its entirety can be affected by entering modern supply chains as product suppliers. Furthermore, it would also be interesting to find out more about how these supply chains’ Labour effects can also affect rural youth (aged 15-34). This is particularly important considering the challenges youth face in rural areas in developing countries, especially vis-a-vis their access to farming and rural non-farm activities and employment. Second, there is a large body of evidence that participation in modern supply chains can have a positive effect on income and contribute to poverty reduction. Yet, much of this evidence builds on the comparison of the effects of participation in modern supply chains with respect to non-participation at all in these supply chains, thus not taking into account the potential heterogeneity of modern supply chains and participation modalities. Indeed, there is evidence that these modern supply chains can differ from each other in terms of their structure, supply arrangements and conditions. Some non-negligible exit rates from producers have also been noted. One could thus assume that participation in these supply chains may convey different effects for participating producers, depending on the characteristics of the supply chains as well as these producers’ individual circumstances. Thus, this dissertation contributes to fill these research gaps and consists of two main chapters. The first chapter aims to analyse the effects of small producer participation in modern export supply chains on household Labour Allocation, via the effects on household on-farm hired Labour demand and off-farm Labour supply. We also adopt an age-disaggregated approach to analyse whether and how these effects benefit particularly rural youth. The second chapter focuses on the effects of small producer participation in two types of modern export supply chains on poverty. Both chapters are implemented within the context of export vegetable supply chains in Tanzania and rely on data collected in 2015 from 349 vegetable producers. For the first chapter, the application of a Generalized Separability Test fails to reject the separability hypothesis in our research context. We thus consider on-farm and off-farm Labour supply decisions as separable and assess them separately through log-normal double-hurdle models. Using a control function approach, we fail to reject the exogeneity of participation in modern export supply chains. Our main results show that participation in modern export supply chains increases a households’ likelihood to hire on-farm Labour by about 10 percentage points and their unconditional hired Labour demand by 83 percent. The age-disaggregated results show that participation in modern export supply chains increases a households’ likelihood to hire young Labourers and older Labourers (aged 35 and over) by 12 and 13 percentage points, respectively. We also find that it has an effect on the unconditional hired Labour demand for the youth cohort only, which it increases by about 62 percent. The effect on the unconditional hired Labour demand for the older age cohort is not statistically significant. On the other hand, we find no evidence of an effect on neither household’s decision to enter off-farm Labour markets, nor on their total off-farm Labour supply. In the second chapter, we estimate endogenous switching regressions models to assess the effect of participation in modern export supply chains on household per capita income. We differentiate between two types of modern export supply chains: high-value export supply chains and regular export supply chains. We find that overall participation in modern export supply chains has a positive effect on household income per capita, which is increased by 77 percent. However, we find that this effect is mostly driven by the high-value export supply chains, in which participation increases household income per capita by 45 or 99 percent, depending on the comparison group used. On the other hand, we find that participation in regular export supply chains has overall a negative effect on participating producers’ household income per capita. Through a disaggregation of the average treatment effects, we also find that larger and richer producers benefit the most from participating in the high-value export supply chains while some of the poorer producers can actually benefit from supplying the regular export supply chains as it would increase their household income per capita by 14 percent. A few lessons and conclusions can be drawn from these two chapters. In general, they confirm that small producer participation in modern export supply chains has positive effects on rural development, either through Labour market effects or directly through product market effects. By generating casual agricultural wage Labour employment opportunities, in particular for youth, it creates livelihoods options for the poor. Furthermore, our results confirm that small producers can benefit from participating in the export modern supply chains, although in our research context, this effect seems to be limited to what we have defined as high-value export supply chains. Participation in modern export supply chains per se may thus not translate directly into poverty reduction effects. Participation dynamics and modalities of different types of modern export supply chains can affect participating producers’ livelihoods differently. These conclusions, as well as policy recommendations and the limitations of the study, are discussed in the last section of this dissertation.

  • export vegetable supply chains household Labour Allocation and poverty effects among small producers evidence from northern tanzania
    2018
    Co-Authors: Marwan Benali
    Abstract:

    Throughout the past years, global agri-food systems have been deeply evolving with the rise and consolidation of modern supply chains. The emergence and increasing role played by these modern supply chains have been prompted by, among others, the growth and increasing domination of supermarkets and retailers as well as an increase of the demand in the developed countries for fresh and healthy products such as fruits and vegetables. This has in turn favoured the expansion of global trade of these high-value agricultural products and in particular their exports from developing countries to developed countries. These modern export supply chains are different than the traditional supply chains in the sense that they are more concentrated, follow a strong vertical coordination pattern with a domination of the aforementioned retailers and are regulated by more stringent quality standards and requirements. A comparable process has also taken place with the emergence of domestic modern supply chains and the rise of supermarkets in developing countries. These changes have important consequences in terms of agricultural and rural development for developing countries. Indeed, some of the small producers who are not able to comply with these supply chains requirements may no longer be able to participate in the latter and thus be excluded, which could affect their livelihoods. However, in many cases small producers have eventually not systematically been excluded from these modern supply chains and have managed to participate in the latter as suppliers, including through contract farming schemes and other types of supplying arrangements. The implications and development effects for these small producers supplying their produce to modern supply chains have been of interest and analysed by the literature, in particular in terms of Labour and employment generation as well as poverty reduction. Yet, some related research areas remain unaddressed. First, with regard to the Labour market effects, evidence from the literature shows that small producer participation in modern supply chains, in particular when it comes to horticultural products, can generate employment opportunities, via an increased on-farm casual Labour demand, benefitting in particular women. Building on the literature on rural household Labour Allocation decision process and the concept of non-separability, one could expect that participation in modern export supply chains may potentially affect the Labour Allocation of participating households, i.e. both their on-farm hired Labour demand and off-farm Labour supply decisions. This specific aspect has not yet been entirely covered by research in this area since little is known about whether and how this Labour Allocation process in its entirety can be affected by entering modern supply chains as product suppliers. Furthermore, it would also be interesting to find out more about how these supply chains’ Labour effects can also affect rural youth (aged 15-34). This is particularly important considering the challenges youth face in rural areas in developing countries, especially vis-a-vis their access to farming and rural non-farm activities and employment. Second, there is a large body of evidence that participation in modern supply chains can have a positive effect on income and contribute to poverty reduction. Yet, much of this evidence builds on the comparison of the effects of participation in modern supply chains with respect to non-participation at all in these supply chains, thus not taking into account the potential heterogeneity of modern supply chains and participation modalities. Indeed, there is evidence that these modern supply chains can differ from each other in terms of their structure, supply arrangements and conditions. Some non-negligible exit rates from producers have also been noted. One could thus assume that participation in these supply chains may convey different effects for participating producers, depending on the characteristics of the supply chains as well as these producers’ individual circumstances. Thus, this dissertation contributes to fill these research gaps and consists of two main chapters. The first chapter aims to analyse the effects of small producer participation in modern export supply chains on household Labour Allocation, via the effects on household on-farm hired Labour demand and off-farm Labour supply. We also adopt an age-disaggregated approach to analyse whether and how these effects benefit particularly rural youth. The second chapter focuses on the effects of small producer participation in two types of modern export supply chains on poverty. Both chapters are implemented within the context of export vegetable supply chains in Tanzania and rely on data collected in 2015 from 349 vegetable producers. For the first chapter, the application of a Generalized Separability Test fails to reject the separability hypothesis in our research context. We thus consider on-farm and off-farm Labour supply decisions as separable and assess them separately through log-normal double-hurdle models. Using a control function approach, we fail to reject the exogeneity of participation in modern export supply chains. Our main results show that participation in modern export supply chains increases a households’ likelihood to hire on-farm Labour by about 10 percentage points and their unconditional hired Labour demand by 83 percent. The age-disaggregated results show that participation in modern export supply chains increases a households’ likelihood to hire young Labourers and older Labourers (aged 35 and over) by 12 and 13 percentage points, respectively. We also find that it has an effect on the unconditional hired Labour demand for the youth cohort only, which it increases by about 62 percent. The effect on the unconditional hired Labour demand for the older age cohort is not statistically significant. On the other hand, we find no evidence of an effect on neither household’s decision to enter off-farm Labour markets, nor on their total off-farm Labour supply. In the second chapter, we estimate endogenous switching regressions models to assess the effect of participation in modern export supply chains on household per capita income. We differentiate between two types of modern export supply chains: high-value export supply chains and regular export supply chains. We find that overall participation in modern export supply chains has a positive effect on household income per capita, which is increased by 77 percent. However, we find that this effect is mostly driven by the high-value export supply chains, in which participation increases household income per capita by 45 or 99 percent, depending on the comparison group used. On the other hand, we find that participation in regular export supply chains has overall a negative effect on participating producers’ household income per capita. Through a disaggregation of the average treatment effects, we also find that larger and richer producers benefit the most from participating in the high-value export supply chains while some of the poorer producers can actually benefit from supplying the regular export supply chains as it would increase their household income per capita by 14 percent. A few lessons and conclusions can be drawn from these two chapters. In general, they confirm that small producer participation in modern export supply chains has positive effects on rural development, either through Labour market effects or directly through product market effects. By generating casual agricultural wage Labour employment opportunities, in particular for youth, it creates livelihoods options for the poor. Furthermore, our results confirm that small producers can benefit from participating in the export modern supply chains, although in our research context, this effect seems to be limited to what we have defined as high-value export supply chains. Participation in modern export supply chains per se may thus not translate directly into poverty reduction effects. Participation dynamics and modalities of different types of modern export supply chains can affect participating producers’ livelihoods differently. These conclusions, as well as policy recommendations and the limitations of the study, are discussed in the last section of this dissertation.

Trevor Young - One of the best experts on this subject based on the ideXlab platform.

  • off farm Labour Allocation decisions in small scale rural households in zimbabwe
    Agricultural Economics, 2004
    Co-Authors: Innocent Matshe, Trevor Young
    Abstract:

    The double hurdle model is used to analyse the off-farm Labour decisions of small-scale agricultural household members in the Shamva District of Zimbabwe. The approach permits the joint modelling of the decision to participate in the Labour market and the decision regarding the amount of time allocated to work. Results indicate that a number of variables (notably, gender, education and assets) indeed have effects which are qualitatively and quantitatively different in terms of participation and hours worked. Overall, the empirical analysis confirms the importance of individual characteristics (such as gender and education) and household/farm characteristics (e.g. land area accessible to the household, productive assets, remittances and the agricultural terms of trade) in influencing the Labour market decisions of rural household members.

  • Off‐farm Labour Allocation decisions in small‐scale rural households in Zimbabwe
    Agricultural Economics, 2004
    Co-Authors: Innocent Matshe, Trevor Young
    Abstract:

    The double hurdle model is used to analyse the off-farm Labour decisions of small-scale agricultural household members in the Shamva District of Zimbabwe. The approach permits the joint modelling of the decision to participate in the Labour market and the decision regarding the amount of time allocated to work. Results indicate that a number of variables (notably, gender, education and assets) indeed have effects which are qualitatively and quantitatively different in terms of participation and hours worked. Overall, the empirical analysis confirms the importance of individual characteristics (such as gender and education) and household/farm characteristics (e.g. land area accessible to the household, productive assets, remittances and the agricultural terms of trade) in influencing the Labour market decisions of rural household members.

Thia Hennessy - One of the best experts on this subject based on the ideXlab platform.

  • The Labour Allocation Decisions of Farm Households: Defining a Theoretical Model
    2012
    Co-Authors: Trevor Donnellan, Thia Hennessy
    Abstract:

    This paper presents a theoretical model for the analysis of decisions regarding farm household Labour Allocation. The agricultural household model is selected as the most appropriate theoretical framework; a model based on the assumption that households behave to maximise utility, which is a function of consumption and leisure, and is subject to time and budget constraints. The model can be used to describe the role of government subsidies in farm household Labour Allocation decisions; in particular the impact of decoupled subsidies on Labour Allocation can be examined. Decoupled subsidies are a Labour-free payment and as such represent an increase in Labour-free income or wealth. An increase in wealth allows farm households to work less while maintaining consumption. On the other hand, decoupled subsidies represent a decline in the return to farm Labour and may lead to a substitution effect, i.e. farmers may choose to substitute non-farm work for farm work. The theoretical framework proposed in this paper allows us to examine these two conflicting effects.

  • Defining a theoretical model of farm households’ Labour Allocation decisions
    2012
    Co-Authors: Trevor Donnellan, Thia Hennessy
    Abstract:

    This paper presents a theoretical model for the analysis of decisions regarding farm household Labour Allocation. The agricultural household model is selected as the most appropriate theoretical framework; a model based on the assumption that households behave to maximise utility, which is a function of consumption and leisure, and is subject to time and budget constraints. The model can be used to describe the role of government subsidies in farm household Labour Allocation decisions; in particular the impact of decoupled subsidies on Labour Allocation can be examined. Decoupled subsidies are a Labour-free payment and as such represent an increase in Labour-free income or wealth. An increase in wealth allows farm households to work less while maintaining consumption. On the other hand, decoupled subsidies represent a decline in the return to farm Labour and may lead to a substitution effect, i.e. farmers may choose to substitute non-farm work for farm work. The theoretical framework proposed in this paper allows us to examine these two conflicting effects.

  • The Labour Allocation Decisions of Farm Households: Defining a theoretical model. Factor Markets Working Paper No. 31, October 2012
    2012
    Co-Authors: Trevor Donnellan, Thia Hennessy
    Abstract:

    This paper presents a theoretical model for the analysis of decisions regarding farm household Labour Allocation. The agricultural household model is selected as the most appropriate theoretical framework; a model based on the assumption that households behave to maximise utility, which is a function of consumption and leisure, and is subject to time and budget constraints. The model can be used to describe the role of government subsidies in farm household Labour Allocation decisions; in particular the impact of decoupled subsidies on Labour Allocation can be examined. Decoupled subsidies are a Labour-free payment and as such represent an increase in Labour-free income or wealth. An increase in wealth allows farm households to work less while maintaining consumption. On the other hand, decoupled subsidies represent a decline in the return to farm Labour and may lead to a substitution effect, i.e., farmers may choose to substitute non-farm work for farm work. The theoretical framework proposed in this paper allows for the examination of these two conflicting effects.

  • Defining an Institutional Framework for the Labour Market
    2012
    Co-Authors: Trevor Donnellan, Kevin Hanrahan, Thia Hennessy
    Abstract:

    This paper describes a conceptual framework for the empirical analysis of farmers’ Labour Allocation decisions. The paper presents a brief overview of previous farm household Labour Allocation studies. Following this, the agricultural household model, developed by Singh, Squire and Strauss (1986), which has been frequently applied to the study of Labour Allocation, is described in more depth. The agricultural household model, the theoretical model to be used in this analysis, is based on the premise that farmers behave to maximise utility, which is a function of consumption and leisure. It follows that consumption is bound by a budget constraint and leisure by a time constraint. The theoretical model can then be used to explain how farmers decide to allocate their time between leisure, farm work and offfarm work within the constraints of a finite time endowment and a budget constraint. Work, both farm and off-farm, provides a return to Labour which in turn relaxes the budget constraint allowing the farm household to consume more. The theoretical model can also be used to explore the impact on government policies on Labour Allocation. It follows that subsidies that decrease commodity prices, such as reductions in intervention prices, mean that farmers have to work more (either on or off the farm) to maintain income and consumption levels. On the other hand, income support subsidies that are not linked to output or Labour, such as decoupled subsidies, are a source of non-Labour income and as such allow farmers to work less while maintaining consumption levels, known as the wealth effect.

  • Defining an Institutional Framework for the Labour Market. Factor Markets Working Paper No. 24, February 2012
    2012
    Co-Authors: Trevor Donnellan, Kevin Hanrahan, Thia Hennessy
    Abstract:

    This paper describes a conceptual framework for the empirical analysis of farmers’ Labour Allocation decisions. The paper presents a brief overview of previous farm household Labour Allocation studies. Following this, the agricultural household model, developed by Singh, Squire and Strauss (1986), which has been frequently applied to the study of Labour Allocation, is described in more depth. The agricultural household model, the theoretical model to be used in this analysis, is based on the premise that farmers behave to maximise utility, which is a function of consumption and leisure. It follows that consumption is bound by a budget constraint and leisure by a time constraint. The theoretical model can then be used to explain how farmers decide to allocate their time between leisure, farm work and off-farm work within the constraints of a finite time endowment and a budget constraint. Work, both farm and off-farm, provides a return to Labour which in turn relaxes the budget constraint allowing the farm household to consume more. The theoretical model can also be used to explore the impact on government policies on Labour Allocation. It follows that subsidies that decrease commodity prices, such as reductions in intervention prices, mean that farmers have to work more (either on or off the farm) to maintain income and consumption levels. On the other hand, income support subsidies that are not linked to output or Labour, such as decoupled subsidies, are a source of non-Labour income and as such allow farmers to work less while maintaining consumption levels, known as the wealth effect.

Hao Zhou - One of the best experts on this subject based on the ideXlab platform.

  • Rural-urban disparity and sectoral Labour Allocation in China
    Journal of Development Studies, 1999
    Co-Authors: Dennis Tao Yang, Hao Zhou
    Abstract:

    This study examines China's rural-urban segmentation and its causes in the context of economic reforms. Household survey and aggregate data indicate a V-shaped process in which rural-urban consumption and income differentials decreased between 1978 and 1985, but then have continually increased to historically high levels. This sectoral division is consistent with production function estimates based on provincial data that reveal higher Labour productivity in urban/state-owned industries than in rural industries and agriculture. To explain the V-shaped change, we argue that the precedent of successful rural reforms raised farmers' relative earnings, but the remaining obstacles to an efficient sectoral Allocation of Labour have prevented China from eliminating dualism. Recent financial policies consisting of urban price subsidies and increased investment credits have also had influential distribution effects that are biased against the rural sector.