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Consistent Aggregation of Family and Hired Labor in Agricultural Production Functions

dc.contributor.authorBarnum, Howard N.en_US
dc.contributor.authorSquire, Lynen_US
dc.date.accessioned2013-11-14T23:22:04Z
dc.date.available2013-11-14T23:22:04Z
dc.date.issued1978-01en_US
dc.identifier.otherMichU CenRED D73en_US
dc.identifier.otherQ120en_US
dc.identifier.otherO130en_US
dc.identifier.otherD240en_US
dc.identifier.otherJ430en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/100920
dc.description.abstractAn estimated production function for the Muda river valley in Malaysia is used to examine three issues: (1) whether or not labor marginal product is zero, (2) whether or not farm households allocate resources efficiently and (3) whether or not agricultural labor markets are characterized by dualism. In areas where an active labor market exists the first two of these issues may be closely related to the third if family and hired labor can be considered separate factors of production. This study shows that if the labor aggregate is defined as the sum of family and hired labor the resulting production function estimate will be subject to specification bias which will render empirical tests of the issues mentioned invalid. Using separate variables for family and hired labor it is shown that the marginal product of family labor is positive and significantly different from zero and that farms are approximately allocatively efficient. The study does find, however, some substantiation for a mild degree of dualism in the labor market.en_US
dc.description.sponsorshipCenter for Research on Economic Development, University of Michiganen_US
dc.relation.ispartofseriesCenter for Research on Economic Development. Discussion Paperen_US
dc.subjectAgriculture Agricultural Labor Marketsen_US
dc.subjectFarm Laboren_US
dc.subject.otherMicro Analysis of Farm Firms, Farm Households, and Farm Input Marketsen_US
dc.subject.otherEconomic Development: Agricultureen_US
dc.subject.otherNatural Resourcesen_US
dc.subject.otherEnergyen_US
dc.subject.otherEnvironmenten_US
dc.subject.otherOther Primary Productsen_US
dc.subject.otherProductionen_US
dc.subject.otherCosten_US
dc.subject.otherCapital and Total Factor Productivityen_US
dc.subject.otherCapacityen_US
dc.subject.otherAgricultural Labor Marketsen_US
dc.subject.otherMalaysiaen_US
dc.titleConsistent Aggregation of Family and Hired Labor in Agricultural Production Functionsen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelSocial Sciencesen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/100920/1/ECON036.pdf
dc.owningcollnameEconomics, Department of - Working Papers Series


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