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Product market integration and household labor supply in a poor economy: evidence from Vietnam

Author

Listed:
  • Edmonds
  • Eric V.
  • Pavcnik, Nina
Abstract
This report considers how product market integration in a country's primary agricultural export alters the economic activities of men and women in a poor economy. Between 1993 and 1997, Vietnam relaxed its rice export quota and freed internal restrictions on the trade of rice across regions. These reforms contributed to an almost 30 percent increase in the real price of rice. Using a panel of rural Vietnamese communities that spans the period of policy change,the authors relate the regional and intertemporal variation in the price of rice to changes in the economic activities of children, young adults, and adults by gender. They find that higher rice prices are associated with lower participation in wage work by boys, girls, and young adults, and lower participation in household production by adults. Moreover, higher rice prices are associated with less time devoted to household production for all age groups and adults devoting more hours to wage work. Finally, with the exception of children, labor market responses to changes in rice prices mostly do not differ statistically for males and females.

Suggested Citation

  • Edmonds & Eric V. & Pavcnik, Nina, 2004. "Product market integration and household labor supply in a poor economy: evidence from Vietnam," Policy Research Working Paper Series 3234, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3234
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    References listed on IDEAS

    as
    1. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 57, pages 3607-3709, Elsevier.
    2. Dwayne Benjamin & Loren Brandt, 2002. "Agriculture and Income Distribution in Rural Vietnam under Economic Reforms: A Tale of Two Regions," Working Papers benjamin-02-01, University of Toronto, Department of Economics.
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    7. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    8. Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
    9. Constance Newman, 2002. "Gender, Time Use, and Change: The Impact of the Cut Flower Industry in Ecuador," The World Bank Economic Review, World Bank, vol. 16(3), pages 375-395, December.
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    12. Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers 121, World Bank - Living Standards Measurement.
    13. Edmonds, Eric V. & Pavcnik, Nina, 2006. "Trade liberalization and the allocation of labor between households and markets in a poor country," Journal of International Economics, Elsevier, vol. 69(2), pages 272-295, July.
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    Cited by:

    1. Kathleen Beegle & Rajeev Dehejia & Roberta Gatti, 2009. "Why Should We Care About Child Labor?: The Education, Labor Market, and Health Consequences of Child Labor," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
    2. Edmonds & Eric V., 2004. "Household composition and the response of child labor supply to product market integration: evidence from Vietnam," Policy Research Working Paper Series 3235, The World Bank.
    3. Barbara Coello & Madior Fall & Akiko Suwa-Eisenmann, 2010. "Trade Liberalization And Poverty Dynamics in Vietnam 2002-2006," PSE Working Papers halshs-00966364, HAL.

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