Product Market Integration and Household Labor Supply in a Poor Economy : Evidence from Vietnam
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World Bank, Washington, DC
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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.
Palabras clave
AGRICULTURAL PRODUCTION, AGRICULTURE, COMMODITIES, COMPARATIVE ADVANTAGE, CONSUMER PRICE INDEX, CONSUMERS, ECONOMIC DEVELOPMENT, ECONOMICS, EMPLOYMENT, EQUILIBRIUM, EXPENDITURES, EXPORTS, FORESTRY, GNP, GNP PER CAPITA, INCOME, INCOME EFFECT, INCOME EFFECTS, INTERNATIONAL MARKETS, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR SUPPLY, LEISURE, LIQUIDITY, LIVING STANDARDS, LOW-INCOME COUNTRIES, MARGINAL PRODUCT, MARGINAL VALUE, MARKET INTEGRATION, MARKET LIBERALIZATION, MARKETING, NORMAL GOOD, OPPORTUNITY COST, POLICY ENVIRONMENT, PRICE CHANGES, PRICE INCREASES, PRODUCERS, QUOTAS, REAL WAGES, RELATIVE VALUE, RURAL COMMUNITIES, SUBSTITUTES, SUBSTITUTION, SUBSTITUTION EFFECT, SURPLUS, TRADE BARRIERS, TRADE LIBERALIZATION, URBAN AREAS, WAGE RATES, WAGES, WTO GENDER RESEARCH, RICE CULTIVATION, RICE PRICES, RICE PRODUCTION, RICE RESEARCH, GENDER DIFFERENCES
