Shadow wages and peasant labor supply : an econometric application to the Peruvian Sierra

I..SJTls LSM -73 AUG. 1990 Living Standards Measurement Study Working Paper No. 73 Shadow Wages and Peasant Family Labor Supply An Econometric Application to the Peruvian Sierra Hanan G. Jacoby  LSMS Working Papers No. 4 Towards More Effective Measurement of Levels of Living, and Review of Work of the United Nations Statistical Office (UNSO) Related to Statistics of Levels of Living No. 5 Conducting Surveys in Developing Countries: Practical Problems and Experience in Brazil, Malaysia, and the Philippines No. 6 Household Survey Experience in Africa No. 7 Measurement of Welfare: Theory and Practical Guidelines No. 8 Employment Data for the lMeasurement of Living Standards No. 9 Income and Expenditure Surveys in Developing Countries: Sample Design and Execution No. 10 Reflections on the LSMS Group Meeting No. 11 Three Essays on a Sri Lanka Household Survey No. 12 The ECIEL Study of Household Income and Consumption in Urban Latin America: An Analytical History No.13 Nutrition and Health Status Indicators: Suggestions for Surveys of the Standard of Living in Developing Countries No. 14 Child Schooling and the Measurement of Living Standards No. 15 Measuring Health as a Component of Living Standards No. 16 Procedures for Collecting and Analyzing Mortality Data in LSMS No. 17 The Labor Market and Social Accounting: A Framework of Data Presentation No. 18 7ime Use Data and the Living Standards Measurement Study No. 19 The Conceptual Basis of Measures of Household Welfare and Their Implied Survey Data Requirements No. 20 Statistical Experimentation for Household Surveys: Two Case Studies of Hong Kong No. 21 The Collection of Price Data for the Measurement of Living Standards No.22 Household Expenditure Surveys: Some Methodological Issues No.23 Collecting Panel Data in Developing Countries: Does It Make Sense? No.24 Measuring and Analyzing Levels of Living in Developing Countries: An Annotated Questionnaire No.25 The Demand for Urban Housing in the Ivory Coast No.26 The C6te d'Ivoire Living Standards Survey: Design and Implementation No.27 The Role of Employment and Earnings in Analyzing Levels of Living: A General Methodology with Applications to Malaysia and Thailand No.28 Analysis of Household Expenditures No. 29 The Distribution of Welfare in Cote d'Ivoire in 1985 No. 30 Quality, Quantity, and Spatial Variation of Price: Estimating Price Elasticities from Cross-Sectional Data No.31 Financing the Health Sector in Peru No.32 Informal Sector, Labor Markets, and Returns to Education in Peru No.33 Wage Determinants in C6te d'Ivoire No.34 Guidelines for Adapting the LSMS Living Standards Questionnaires to Local Conditions No. 35 The Demand for Medical Care in Developing Countries: Quantity Rationing in Rural C6te d'Ivoire No.36 Labor Market Activity in C6te d'Ivoire and Peru No.37 Health Care Financing and the Demand for Medical Care No.38 Wage Determinants and School Attainment among Men in Peru No.39 The Allocation of Goods within the Household: Adults, Children, and Gender (List continues on the inside back cover)  Shadow Wages and Peasant Family Labor Supply An Econometric Application to the Peruvian Sierra  The Living Standards Measurement Study The Lving Standards Measurement Study (LSMS) was established by the World Bank in 1980 to explore ways of improving the type and quality of house- hold data collected by statistical offices in developing countries. Its goal is to foster increased use of household data as a basis for policy decisionmaking. Specifically, the L1MS is working to develop new methods to monitor progress in raising levels of living, to identify the consequences for households of past and proposed gov- ernment policies, and to improve communications between survey statisticians, an- alysts, and policymakers. The LSMS Working Paper series was started to disseminate intermediate prod- ucts from the LSMS. Publications in the series include critical surveys covering dif- ferent aspects of the LSMS data collection program and reports on improved methodologies for using Living Standards Survey (LsS) data. More recent publica- tions recommend specific survey, questionnaire, and data processing designs, and demonstrate the breadth of policy analysis that can be carried out using LSs data.  LSMS Working Paper Number 73 Shadow Wages and Peasant Family Labor Supply An Econometric Application to the Peruvian Sierra Hanan G. Jacoby The World Bank Washington, D.C.  Copyright