Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal
用新方法估计尼泊尔农户的劳动供给，发现男女劳动供给对影子工资和收入变化敏感，教育提高产出但不影响总劳动供给，并否定了农村有效劳动市场的存在。
Abstract This paper examines the labor supply of farm households in Nepal using a recently developed methodology that accounts for the simultaneity between production and consumption decisions of the households. Estimates of marginal products of male and female labor or shadow wages are obtained from an agricultural production function. An instrumental variable approach is then used to recover the household's structural labor supply from variations in the shadow wages and income, as well as other household characteristics. The findings reveal that both male and female total labor supply are sensitive to changes in shadow wages and income. Human capital embodied in education is found to exert a significant positive effect on output, but has no statistically significant impact on total labor supply of individuals. The results also rejects the existence of efficient labor markets in rural Nepal.