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Education, Labor Supply, and Market Development in Rural Peru

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  • Laszlo, Sonia
Abstract
Summary Research suggests that education has a limited effect on subsistence farm productivity. Yet, rural incomes include more than farming as households diversify their income portfolios. Furthermore, education may affect the number of labor hours supplied. Utilizing data from Peru, this paper finds that farm households benefit from more education by finding more lucrative opportunities, characterized by fewer hours. The extent to which this is possible depends on how well local markets are developed. Since education policy takes time to yield returns, policy makers have an additional tool at their disposal: improving market access will also increase the returns to education.

Suggested Citation

  • Laszlo, Sonia, 2008. "Education, Labor Supply, and Market Development in Rural Peru," World Development, Elsevier, vol. 36(11), pages 2421-2439, November.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2421-2439
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    3. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    4. Diarra, Lacina & Dessy, Sylvain, 2018. "Land Tenure Security and Non-Agricultural Sector Employment: Household-level Evidence from Uganda," 2018 Annual Meeting, August 5-7, Washington, D.C. 274240, Agricultural and Applied Economics Association.
    5. Naeem ur Rehman, Khattak & Jangraiz, Khan & Muhammad, Tariq, 2012. "The Role of Education in Agricultural Productivity in Khyber Pakhtunkhwa(1975-2008)," MPRA Paper 51911, University Library of Munich, Germany, revised 2012.
    6. Kondo, M., 2018. "Schooling and Within-Sector Labor Productivity Outcome in Uganda: Joint Estimation of Returns to Education and Labor Supply," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277473, International Association of Agricultural Economists.
    7. Xia Tian & Yinying Cai & Qing Yang & Jin Xie, 2023. "How Do Heterogeneous Land Development Opportunities Affect Rural Household Nonfarm Employment: A Perspective of Spatial Regulation," Land, MDPI, vol. 12(4), pages 1-16, April.
    8. Wang, Ying & Zhang, Qi & Bilsborrow, Richard & Tao, Shiqi & Chen, Xiaodong & Sullivan-Wiley, Kira & Huang, Qingfeng & Li, Jiangfeng & Song, Conghe, 2020. "Effects of payments for ecosystem services programs in China on rural household labor allocation and land use: Identifying complex pathways," Land Use Policy, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    rural development education labor supply Latin America Peru;

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Political Economy and Comparative Economic Systems

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