Demand for hired labor in rural Madagascar

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2009

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Abstract

This paper estimates structural labor demand equations separately for farm and non-farm enterprises in rural Madagascar. We adapt recent labor supply estimation methods that address the general unobservability of both wage rates – due to widespread self-employment – and employers’ non-wage costs of hiring workers in order to fill a significant void in the existing literature. Labor demand in rural Madagascar appears strongly increasing in enterprise owners’ educational attainment, in enterprises’ capital stock, and in community-level public goods. Furthermore, labor demand appears wage inelastic, especially in the non-farm sector where government labor market policies, such as minimum wage laws, are more commonly enforced.

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MANPOWER NEEDS, RURAL EMPLOYMENT, MADAGASCAR, LABOUR SUPPLY, WAGE DETERMINATION, SELF EMPLOYED, MINIMUM WAGE

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http://hdl.handle.net/10625/46006

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IDRC Research Results / Résultats de recherches du CRDI
2000-2009 / Années 2000-2009
Research Results (GGP) / Résultats de recherches (MCP)