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According to standard economic theory, households should equate the marginal revenue product of an input across activities within the household. However, this prediction may not hold in the presence of risk. Using data on farm plots and non-farm enterprises in Malawi, we examine the impact of...
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A consistent finding in the development literature is that average non-farm labor productivity is higher than average … farm labor productivity. These differences in average productivity are sometimes used to promote policies which advance the … non-farm sector. In this paper, we analyze the importance of two specification choices when comparing productivity gaps …
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