IMPACT OF CREDIT ON LABOR ALLOCATION AND CONSUMPTION PATTERNS IN MALAWI

Using a bargaining framework, this paper analyzes the impact of access to credit on household labor allocation and on consumption expenditures in rural Malawi. The labor participation decisions of married men and women and female heads are estimated using random-effects probit models, and are corrected for endogeneity of access to credit. Expenditure shares are estimated using ordinary least squares and Tobit models.Food Consumption/Nutrition/Food Safety, Labor and Human Capital,

MULTIPLE JOB-HOLDING AMONG U.S. FARM WOMEN: OFF-FARM WORK AND ON-FARM DECISION-MAKING USING A BARGAINING APPROACH

Participation rates for farm women in off-farm labor markets continue to increase, as does their participation in making major farm decisions such as whether to buy or sell land, adopt a new production practice or invest in farm equipment. Data from the Survey of U.S. Farm Women conducted in 2001 by Penn State in collaboration with researchers at the Economic Research Service and in collaboration with NASS are used to examine the multiple work roles of farm women off the farm and in farming. Descriptive statistics for the results of the 2001 survey are compared to those from the last major survey of U.S. farm women conducted by Rosenfeld in 1980. Then, using data limited to farm couples, models of job choice considering jointness in participation are estimated and tested under conditions of presence or absence of children, followed by estimation of models of on-farm decision-making using a household bargaining approach. Of particular interest is the effect of the >path= of intergenerational farm transfer (i.e., if inherited or purchased through her family or through her spouse=s/partner=s family) on job choice and farm decision-making. Results show that the work decisions of farm couples are correlated, both when children are present and when they are not. Further, the >path= of farm transfer influences the choices that women make. The transferof the farm through her family has in some cases a positive influence on her choices, both in terms of her involvement on the farm and her participation in farm decisions. Farm transfer through the husband=s/partner=s family generally has strong negative influences on her participation in farm decision-making. Keywords: bargaining models, multiple job-holding, decision-making, intergenerational transfer, farm women, off-farm employment, employment, laborbargaining models, multiple job-holding, decision-making, intergenerational transfer, farm women, off-farm employment, employment, labor, Labor and Human Capital,

THE EFFECTS OF ENVIRONMENTAL DEGRADATION ON WOMEN'S AND CHILDREN'S TIME ALLOCATION DECISIONS IN MALAWI: IMPACT ON CHILDREN'S WELFARE

The majority of the Malawi people is rural (85%) and lives primarily on subsistence farming (NSO 2001). More than 90% of households collect and use fuel wood as their main source of cooking energy (NEC 2001; NSO 2000). However, between 1990 and 2000, Malawi experienced an average annual deforestation rate of 2.4% that was significantly higher than both Africa's average deforestation rate of 0.78%, and the world's average deforestation rate of 0.22% (UN FAO 2001). Malawi is also reported as one of the countries that will experience water stress by 2025 (PRB 2002). The rapid depletion of natural resources can have significant consequences for the quality of people's lives. Since Malawian women and children are primarily responsible for rural transportation work including collection of fuel wood and water (Edmonds et al. 1995), environmental degradation is expected to affect them disproportionately. This study will investigate the effects of environmental degradation on women's and children's time allocation decisions and the implications on children's school performance and health. The importance of relationships between population, the environment, and poverty has been acknowledged at both international and regional levels since the 1970's (United Nations 1997). However, there is a serious dearth of empirical studies on the nature of such relationships (United Nations 1997). The lack of studies has been cited as one of the reasons frustrating policy makers in their attempt to adopt sustainable development efforts (Arizpe et al. 1994). Some recent studies in this area have looked at effects of environmental degradation on women's fertility (Filmer and Pritchett 1996; Aggarwal et al. 2001); women's time allocation decisions (Cooke 2000); farm productivity (Cooke 1998). Earlier work by the authors showed that environmental degradation was associated with lower school enrollment and high domestic child labor hours, especially for girls (Nankhuni and Findeis 2002). This analysis extends that research to investigate the impact of environmental degradation on school performance. Attempts to look at impact on child health were done by Aggarwal et al. (2001) in South Africa but no significant impact was found. This study will also contribute to the research on effects of environmental degradation on children's health. Methodology Data Data from an Integrated Household Survey of 10,698 households conducted in Malawi in 1997-98 by the Malawi National Statistics Office are used. The data contain information on demographic and socio-economic characteristics of individuals and households, including child levels of education and health. The data also include time allocation information on domestic activities that include time spent on fuel wood and water collection. Information on each household's access to different water sources and whether the household relies on purchasing rather than collecting fuel wood as their main source of cooking energy is also available. Supplementing these data are estimates of fuel wood availability (GOM 1987) and information on access and quality of schools and health facilities at the district level (Benson 2002). Theoretical framework Freeman (1993) proposes that the basis for measuring the economic value of changes in resource environmental systems is the effects on human welfare. Therefore, the starting point for analyzing the impacts of environmental degradation is utility theory. The household production-utility model based on Becker (1965, 1993) and as adapted to farming households by Singh et al. (1976) will be the theoretical approach used in this paper. In this model, households derive utility from consumption of household farm-produced goods and from having children. They also derive positive utility from children's quality normally reflected in the children's health and education. The household's utility is maximized subject to budget, farm and household technology, and time constraints. Assuming that an interior solution to the household's maximization problem exists, reduced-form demand equations for children's health and education can be derived. These demands will be functions of shadow wages, prices, individual and household socio-economic and demographic characteristics, and the state of the environment. As the environment degrades, more hours of work are spent on fuel wood and water collection. This results in increased price of education thereby decreasing demand for education, as children may be needed for domestic work. Similarly, if women in more deforested areas cannot spend enough time on farming, cooking, and childcare this will act as an increase in cost of children's health resulting in the children's poor health (Kumar and Hotchkiss 1988). Estimation strategy The effect of environmental degradation on children's quality will be estimated by adding environmental quality variables in school performance and child health models. The school performance indicators are children's attendance of senior primary school and being in a certain class at the appropriate age for that class. The child health variables are anthropometric measures of weight, height, and weight for height. Possible endogeneity of child schooling, child health, domestic child labor, and fertility decisions will be tested and corrected for, where appropriate. It is expected that environmental degradation will negatively affect children welfare.Environmental Economics and Policy,

THE SECONDARY ECONOMIC IMPACTS OF IRRIGATION DEVELOPMENT IN WASHINGTON

Two potential projects in Washington are examined for their secondary impacts on the economy of the state. A major impact of these projects is to increase the energy costs to regional power consumers. After accounting for the negative impacts of rising energy costs, the long run state level residual income increases by $209 million after irrigating an additional 700,000acres. The distribution of potential benefits is uneven among sectors of the economy and some sectors will possibly experience substantial decreases in returns to stockholder equity as a result of irrigation expansion.Community/Rural/Urban Development, Resource /Energy Economics and Policy,

Maternal Human Capital and Childhood Stunting In Nepal: A Multi-Level Modeling Approach

Childhood stunting among preschool-age children stands as a serious public health problem to be addressed in Nepal. Applying the multi-level modeling approach to nationally representative data, in the overall, we provide evidence that the negative influence of maternal own education to childhood stunting occurs especially for mother's higher level of education, but there exists substantial residential variations. Most interestingly, we provide new evidence of a strong negative community externality of maternal education on childhood stunting, even if mothers of children are uneducated. We also find mother's height is negatively related to childhood stunting, regardless of mother's educational attainment and place of residence, providing evidence of intergenerational transmission of maternal health.Health Economics and Policy, Labor and Human Capital,

Space, Government Payments, and Off-Farm Labor Response of Principal Farm Operators: A County-Level Analysis

We examine the effects of space and government payments on off-farm employment among principal farm operators for the entire US as well as for ERS/USDA farm resource regions. Spatial dependency in off-farm employment of principal farm operators in the U.S. overall is evident; however, this is not the case for all farm resource regions. While the effects of government payments overall are significant for the U.S., important variations exist by farm program type and across ERS/USDA regions.government payments, off-farm employment, off-farm labor supply, spatial dependence, ERS regions, Farm Management,

STRESS AMONG FARM WOMEN:AN ANALYSIS OF FARM HOUSEHOLDS IN PENNSYLVANIA

Farming is among the high-stress occupations in the United States and farm women have higher stress scores due to multiple job holdings. The study investigates the determinants of time stress experienced by farm women in Pennsylvania applying an economic model of stress developed by Hamermesh and Lee (2003).Farm Management,

Subjective Equilibrium Theory of the Farm Household: Theory Revisited and New Directions

Consumer/Household Economics,

Agricultural Household-Firm Units: Adjustments to Change

This paper assesses agricultural household-firm unit models to determine a useful typology for agricultural policy assessment that draws upon their use. Both standard and bargaining models for analyzing household decisions, including production, consumption, labor, credit, fertility and child schooling, intergenerational transfer, among other key behaviors of households are discussed, as well as data and estimation issues often encountered with household models. Relevant dimensions of a country or region typology are then suggested, focusing on (1) the extent to which markets, particularly labor markets, are perfect, missing or mixed; (2) relevant intra-household and key demographic considerations; and (3) the differentiation of particular household-firm units that are particularly disadvantaged and may be of the most critical policy concern.agricultural households, farm households, labor, labor adjustments, off-farm employment, Consumer/Household Economics, Labor and Human Capital,

OFF-FARM WORK AMONG FARM WOMEN: MOTIVATIONS, EARNINGS, AND BENEFIT RECEIPT

One of the most important changes affecting the agricultural sector in the U.S. has been the increase in off-farm employment and multiple job-holding, especially among women on U.S. farms. This paper examines motivations for off-farm work among farm women in different farm production regions in the U.S. Further, the determinants of off-farm earnings of farm women (and their spouses) are analyzed as well as the receipt of employee benefits by either (or both) the farm woman and farm man. The paper goes beyond assessment of the important role of using off-farm work as a means of accessing health insurance and examines other types of benefits as well, including income for retirement. Background Based on a national survey of farm women conducted in 1980, Rosenfeld (1985) concluded that higher average education levels, advances in labor-saving technologies, and smaller family sizes contributed to 37 percent of U.S. farm women working in off-farm jobs at that time. Data from a recent national survey conducted by Pennsylvania State University showed that in the past two decades this percentage has increased to 52 percent of all farm women, and 62 percent of all working-age farm women. A recent study by Mishra, El-Osta, Morehart, Johnson and Hopkins (2002) concludes that around 71 percent of households in the United States have either the principal farm operator or spouse or both employed in off-farm jobs. Fuller and Madge (1976) observe that off-farm employment gives farm families a chance to interact with new people and to stabilize farm incomes. Mishra and Goodwin (1997) and Mishra (1996) found a positive correlation between off-farm employment and farm income variability, showing that off-farm employment helps many farm households to diversify their income risks. Further, one of the most important reasons for farm family members to work off the farm is to provide the family financial protection that is generally not economical for the farm business to purchase. These non-wage compensations include group health insurance, and group life insurance, as examples (Scholl, 1983; Jensen and Salant, 1985). Fringe benefits are important as they are not taxed as income and can be purchased by groups for lower per unit costs. Methodology Data. In 2001, a national survey of U.S. farm women was conducted by Pennsylvania State University in collaboration with researchers at the Economic Research Service (ERS, USDA) and in conjunction with the National Agricultural Statistics Service (NASS, USDA). The national survey was carried out by telephone. A total of 2,661 farm women responded to the survey that included questions on different motivations or reasons for off-farm work, off-farm wages and days worked, and receipt of employee benefits for both farm men and women. This information was collected in addition to data on characteristics of the farm household, the characteristics of the farm operation, and individual characteristics of both the farm woman and farm man, when present in the household. The data have been disaggregated by the nine production regions used by the USDA, and secondary data to reflect the effects of off-farm labor markets have been appended to the household dataset. Estimation Strategy. To assess those factors that affect the woman's reason for working off the farm, probit models are estimated. Responses range from not important, to somewhat important, to very important. Following this, models of the earnings of the farm man and farm woman in the household are estimated for the U.S. sample, using data on annual off-farm earnings. A Heckman-type approach is used for the earnings functions, since sample selectivity is likely to be a problem. In addition, the participation equations for men and women are jointly estimated, following Huffman (1991 ); Corsi and Findeis (2000 ); and Oluwole (2000). In the first stage, a bivariate probit model of participation in off-farm work is estimated and, if the work decisions between the farm man and women are shown to be jointly determined, the second stage estimation requires simultaneous estimation of the earnings functions of men and women. If sample selectivity is shown to be a problem, the inverse Mill's ratios are included in the second-stage model. Finally, data are available on whether the individual received employee benefits (overall and by type) from their off-farm employment. The following work choices are possible: no work, work in a part-time job with benefits, work in a part-time job without benefits, work in a full-time job with benefits, and work in a full-time job without benefits. A multinomial logit model is used to analyze the alternative work/benefit outcomes. The independent variables in the models include characteristics of the individual, the household, the farm and off-farm labor markets. The method of maximum likelihood is used for estimating the coefficients of the estimators. Preliminary Results Descriptive statistics show that working off the farm for benefits is an important or very important reason for the off-farm employment for many farm women in the United States. About one-third of women note that they work off the farm to help finance the farm operation. Further, preliminary models of earnings from off-farm work show that using a simultaneous equation model with corrections for sample selectivity is an appropriate approach. Earnings of U.S. farm woman are significantly affected by her level of education (as expected) and importantly by the characteristics of the off-farm labor market. The data also reveal that both farm women and men in the U.S. often receive employee benefits from their off-farm jobs, and that receipt of benefits tend to be in 'packages' - i.e., if the individual receives health insurance, they are also very likely to receive other benefits from their employer as well. The survey shows that among women with off-farm work, the following employee benefits from off-farm work were more common: health insurance (59%), life insurance (52%), a pension (54%), paid vacation leave (56%) and paid sick leave (58%). Among men with off-farm work, the following benefits were among the most commonly received: health insurance (67%), life insurance (58%), a retirement pension (59%), paid vacation leave (62%) and paid sick leave (53 %). Preliminary models again show that both education and labor market characteristics strongly affect benefit receipt and full-time job status, and that full-time work without benefits is more common than anticipated.Labor and Human Capital,