‘3... a: .i . .. .35.; y 57-} {I )3 Ermfimfi ., u . . . ,, 4 . .4 ., Jrgaghwu .. . . .fiufiflwmia a THESIS Q 300‘ LIBRAP" I “michlgan a! University I _.. w “' This is to certify that the thesis entitled GENDER-DIFFERENTIATED HOUSEHOLD RESOURCE ALLOCATION - EMPIRICAL EVIDENCE IN SENEGAL presented by Janet M. Owens has been accepted towards fulfillment of the requirements for M. 5. degree in Agricultural Economics Major professor Date fl? 71.7?00/ 0-7 639 MS U is an Affirmative Action/Equal Opportunity Institution PLACE IN RETURN Box to remove this checkout from your record. To AVOID FINES return on or before date due. MAY BE RECALLED with earlier due date if requested. DATE DUE DATE DUE DATE DUE 6/01 cJCIFIC/DateDuepes-nts GENDER-DIF F ERENTIATED HOUSEHOLD RESOURCE ALLOCATION - EMPIRICAL EVIDENCE IN SENEGAL By Janet M. Owens AN ABSTRACT OF A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE Department of Agricultural Economics 2001 Professor John A. Strauss ABSTRACT GENDER-DIFFERENTIATED HOUSEHOLD RESOURCE ALLOCATION - EMPIRICAL EVIDENCE IN SENEGAL By Janet M. Owens This paper examines the weak condition of pareto efficiency maintained by the unitary and collective models of the household. Farm production data collected from Senegalese households over a two-year period are used to test whether resources are allocated efficiently across male- and female-managed plots within a household. Coefficient estimates show that gender-based discrepancies in input usage across plots ultimately lead to lower yields on female-managed plots. Across the two years, female plot managers, on average, generated between 18% and 35% less revenue per hectare than did male plot managers living in the same household. These results suggest that Senegalese households do not achieve allocative efficiency in farm production because resource decisions within the household are driven at least partially on the basis of gender. To my Mother who wasn’t able to see this come to fruition iii Acknowledgments I extend my deepest gratitude to my thesis advisor, Professor John Strauss. His intellectual rigor and unfailing support had a profound impact on the research and on me, personally. I would also like to acknowledge the significant contribution of my other committee members, Proféssor Les Manderscheid, who served as an advisor throughout my studies, and Professor Torn Reardon, who shared his valued insights on the research issues. Without the support of Valerie Kelly and Bocar Diagana this research would not have been possible. Valerie provided access to the IFPRI/ISRA data set and both Bocar and Valerie provided needed consultations to help me understand the enigmas of the data. During the course of my graduate studies I was fortunate to develop many relationships that not only enriched my life while at MSU but will accompany me into the future. I thank Nazmul Chaudhury, Jim Myers, Dave Dibley, Kei Kajisa, Jing-Yi Lai, and Takashi Yamano for their friendships, their shared intellectual pursuits, and for their levity. They helped me find joy in everyday moments and maintain sanity while under duress. I especially acknowledge the friendship of Nazmul Chaudhury whose exuberant spirit continues to make me smile and remind me to live life largely. I am indebted to Mark Haas at the Michigan Department of Treasury who contributed personally and professionally to my intellectual development and to Larry Hembroff at the Institute for Public Policy and Social Research who helped foment my interest in survey research. I thank Georges Fauriol for his many years of devotion, counsel, and confidence in me. He ultimately pushed me to iv pursue graduate studies. I owe special thanks to my family. They seemed to understand the moments when I most needed their support. I thank my father for his unwavering support and generosity. I will always strive to emulate his moral character. Finally, I thank my mother. During the happy moments of my life, I will cherish her buoyant spirit; during the sorrowful ones, I will grasp for her courage. Table of Contents List of Tables .............................................. vii List of Figures .............................................. ix Introduction ................................................ 1 Setting .................................................... 4 The Household Model ........................................ 6 Empirical Estimation ......................................... 11 Data .................................................... 12 Results .................................................... 15 Implications ................................................ 60 Conclusions ................................................ 63 Appendices ................................................. 64 Appendix A .......................................... 64 Appendix B .......................................... 67 Appendix C ............................ I .............. 74 Appendix D .......................................... 81 References ................................................. 88 vi List of Tables Table 1 Mean Revenue, Area, and Input by Gender of Field Manager .............. 16 Table 2a 1989 Plot-level Revenue per Hectare with Household and Crop Effects ...... 21 Table 2b 1990 Plot-level Revenue per Hectare with Household and Crop Effects ...... 22 Table 3a OLS Fixed Effects of Plot-Yield Relationship1989 — All Crops (Household and Crop Effects) ....................................... 24 Table 3b OLS Fixed Effects of Plot-Yield Relationship1990 —- All Crops (Household and Crop Effects) ....................................... 25 Table 4a OLS Fixed Effects of Labor Input Intensities 1989 — All Fields (Household and Crop Effects) ....................................... 28 Table 4b OLS Fixed Effects of Labor Input Intensities 1989 — Peanut Fields (Household and Crop Effects) ....................................... 30 Table 4c OLS Fixed Effects of Labor Input Intensities 1989 — Millet and Sorghum Fields (Household and Crop Effects) ....................................... 32 Table 4d OLS Fixed Effects of Non-Labor Input Intensities 1989 — All Fields (Household and Crop Effects) ....................................... 33 Table 4e OLS Fixed Effects of Non-Labor Input Intensities 1989 — Peanut Fields (Household and Crop Effects) ....................................... 35 vii Table 4f OLS Fixed Effects of Non-Labor Input Intensities 1989 —- Millet and Sorghum Fields (Household and Crop Effects) ....................................... 36 Table 5a OLS Fixed Effects of Labor Input Intensities 1990 — All Fields (Household and Crop Effects) ....................................... 38 Table 5b OLS Fixed Effects of Labor Input Intensities 1990 - Peanut Fields (Household and Crop Effects) ....................................... 39 Table 5c OLS Fixed Effects of Labor Input Intensities 1990 — Millet and Sorghum Fields (Household and Crop Effects) ....................................... 41 Table 5d OLS Fixed Effects of Non-Labor Input Intensities 1990 — All Fields (Household and Crop Effects) ....................................... 42 Table 5e OLS Fixed Effects of Non-Labor Input Intensities 1990 — Peanut Fields (Household and Crop Effects) ....................................... 43 Table 5f OLS Fixed Effects of Non-Labor Input Intensities 1990 - Millet and Sorghum Fields (Household and Crop Effects) ....................................... 44 Table 6 Household Dispersion in Yields ..................................... 53 viii List of Figures Figure 1 Production Residuals, 1989 ......................................... 57 Figure 2 Production Residuals, 1990 ......................................... 58 ix INTRODUCTION The family plays a pivotal role in the allocation and distribution of resources . Yet much controversy exists over how these processes occur. The early analysis treated the household as an aggregate ignoring the specifics of member outcomes and preferences. Becker’s (1965) theory of time conceptualized households as allocating time between the production of goods at home and the purchase of goods with income earned from participation in market activities. Recognizing that agricultural production generates a primary source of income for rural households in developing countries, Singh, Squire, Strauss (1986) extended the analysis of agricultural household behavior by acknowledging that small farmers participate as both producers and consumers in commodity markets to varying degrees'. Individuals buy and sell inputs and commodities in the market while consuming some of their production and utilizing their own resources, namely labor, for production. Chiappori (1988 and 1992) among others2 recognized that the unitary model of The degree depends on whether farmers are net buyers or net sellers. Using data from Senegal, Goetz, 1990 and 1992, models this decision as a two-stage process: first, do farmers participate in the market, and second, if so, do farmers participate as net buyers or net sellers. 2 Manser and Brown, 1980, and McElroy and Horney, 1981 , initiated the two-person Nash bargaining framework as an alternative to representing the household as an aggregated entity in which members pool their resources and maximize a single utility function. These studies offered the possibility that two individuals would consider forming a household on the basis of whether the utility gains associated with marriage would be greater than the sum of each individual’s indirect utility, a function of prices related to the consumption of private goods and non-labor income. An individual’s indirect utility is representative of her best possible alternative stateueither remaining single or choosing another partner, given 1 the household was neither illuminating about the real processes of distribution occurring within the household nor fundamentally linked to neoclassical theory. This work demonstrated that households should be represented as a set of members who may have distinct goals and preferences. Using consumption data, Browning, et a1 (1996), Thomas (1990), and Hopkins and Haddad (1994), showed that either different types of expenditures made in the household or the timing of these expenditures could be linked to the shares of income claimed by the various members. While these studies disputed the relevance of the unitary model, they made only minimal assumptions about how members resolve conflicts: The outcome of the distributive process was generally posited as being an efficient outcome. Confronting the weak condition of pareto efficiency, Udry (1996) tested whether the behavior of agricultural producers in Burkina Faso could be assumed to meet this criteria.3 His findings showed that households allocated agricultural inputs to members in such a way as to cause losses in agricultural output. His results suggest that neither the unitary nor cooperative model suffice to explain household behaviOr. Following the important contribution of Udry’s (1996) inquiry into intra-household information about possible alternatives. The economic gains associated with the marriage are evaluated according to the indirect utilities of the individuals which become threat points to the potential dissolution of the union. Lundberg and Pollack, 1993, tempered the notion of the fall-back position by suggesting that a non-cooperative marriage could result in the partners retreating to their ‘separate spheres’ and not necessarily in divorce. 3 Jones, 1983, tested whether labor supply behavior of women living in agricultural households in Cameroon could be characterized as allocatively efficient. She concluded that compared to widows, who maintained complete control over the remuneration of their labor, wives spent 40% less time in rice planting activities that generated higher returns to labor than other crops but which were expected to be handed over to men. Under circumstances in which the returns to women’s labor are contested by male household members who hold different preferences, Jones suggested that the problem associated with dividing the proceeds will be resolved by bargaining. resource allocation in Burkina Faso, this paper will explore whether similar findings can be supported in Senegal, another west African setting. Operating within the neoclassical fiamework of separability in supply and consumption decisions, and on the weak assumption maintained by the unitary and collective models-- namely that allocations of household resources are efficient-- I test whether the gender of the plot manager affects input usage across fields within a household whose members manage separate fields using two years of cross-section data. Similar to Udry, I control for the heterogeneity of resource endowments across households by using an OLS dummy variable regression approach. The results obtained from this method are analogous to those generated by using a time-demeaned fixed effects approach with panel data. This strategy enables me to isolate the comparison of input usage across male- and female-managed fields planted to the same or similar crops within a particular household and without having to match fields over time. The matching of plots is not possible in this setting because land was both reconfigured and reassigned to different household members for each of the agricultural seasons occurring during the survey period. I examine the gender-specific effects separately across the two-year period because agricultural conditions appeared to be extremely time-sensitive, although pooling the two years of data may have led to more robust results. I find gender-based discrepancies in input usage across plots within a household which ultimately lead to lower yields on female- managed plots. These findings provide further corroboration that neither the unitary nor the cooperative bargaining models used currently to analyze the determinants of intra- household decision making are realistic. SETTING Most ethnic groups in Senegal live in extended family units and maintain polygamous households.4 The extended family may be comprised of more than one nuclear family, unmarried siblings, and other dependents. These families reside in a vertical hierarchy of succeeding generations, known as a concession, in which married sons and their dependents are subordinate to their father. It is the father, or head of concession, who determines agricultural production by delegating available land as communal (family) fields or personal fields.5 As an obligation to the household head, all members must allocate some of their labor to the household fields which are utilized for the production of food crops. In exchange, the household head provides food for the family and land for personal use. Women are entitled to land for their own use which they may allocate to cash crop production. Some of the returns generated from women’s personal fields are used to provide condiments, including vegetables and dried fish, to the meal. In addition to working in About 43% of the married male household head respondents had more than one spouse. While this occurrence is higher than the 31.3% reported by Goldman and Pebley, 1989, who use 1976 census data, it may be comparable. Census data report the incidence of poly gyny for all man'ied men, whereas the IF PRI/ISRA data contain a large number of concession heads who would be wealthier on average than a nationally representative household sample. 5 Men and women farm separately throughout many societies in West Afiica, but the allocation of land by men to women and their ultimate control of the agricultural production process has historical precedence. Guyer (1980) defines the sexual division of labor for the Beti, an ethnic group in Cameroon: During precolonial times men’ 5 contributions to farming was substantial. They cleared the forest for planting, felled trees, built enclosures to protect crops from destruction by animals, and constructed storage houses for crops. These fields were considered owned by men although women weeded, harvested and took general care of them. However, it is the men’s work which defined field size and length of fallow. In modern times, by making annual plot assignments to household members, men still determine the field size and length of fallow for land utilized as personal plots within the family. family and personal fields, women perform other home maintenance activities and may be engaged in off-farm income activities. Thus, the pattern of agricultural production in Senegal corresponds with the pattern found in Burkina Faso. Household production is implemented on multiple parcels of land and controlled by different members of the household. Crop choice and input decisions are made independently by each of the members who are allocated land while the household serves as a pool of labor for production. Men, women, and children perform specific agricultural tasks determined usually on the basis of gender. In the Senegal context, agriculture is managed within the household by multiple individuals but is dependent upon the complementarities of male and female labor supply. Additionally, family plot managers who grow peanuts, the family’s most important cash crop, may be dependent upon the household head for obtaining peanut seed. Peanut seed has been cited by Senegalese farmers as one of the most critical input constraints (Kelly, 1 996). The dynamics of interdependent household production in Senegal generate a setting in which plot managers are successful only if they can negotiate for shares of various inputs from other household members. When members fail to obtain the inputs necessary for optimal productivity they may incur losses attributed to inefficiency. Particularly when credit is scarce and the only available resources obtained by the household head are not dispersed to other members, the only asset under a women’s domain is her productive labor women. Goetz (1990) suggests that labor cooperation between men and women may fall apart during periods of low food productivity. He depicts the Senegalese household as a coalition of individuals with divergent interests. The household head is charged with the responsibility of growing a sufficient amount of cereal to meet nuclear household food requirements. Wives, young sons, and migrant workers, in contrast, are focused on generating cash income. Each of these members in the household pursues a distinct objective, but economies of scale will be obtained if these members form a coalition. If the sum of the benefits obtained by the individual members working together as a group is greater than the sum of the individual member’s gain from working alone, cooperation should be sustainable. However, if the benefits received by the coalition differ from those contracted, the coalition may fail. THE HOUSEHOLD MODEL Pareto efficiency in a cooperative agricultural household implies that factors be allocated efficiently across its productive activities. Consider a household with two members, a male, m, and a female, f, who produce a crop, (qc), on separate parcels of land owned by the household.“ The crop is produced with two inputs of labor (Lim) and (L,’) on each of two land parcels embodying characteristics of size and quality. The household has an endowment of land, comprised of multiple parcels, (A, ), and labor time, (LT).7 Although these members apply their labor to the production on both land parcels, they allocate labor to other activities associated with home production, 2, and to off-farm production, qo. Since the household’s objective is to maximize the profits achieved fiom its fixed assets of land, it will utilize labor until the marginal revenue product of labor is equated to a shadow wage—or market wage depending on the existence of a well functioning labor market. In a The model can be generalized to a multiple person, multiple crop, and multiple plot setting. 7 Although the data Show that some of the sampled households employed hired labor, most of households didn’t seem to rely upon the hired labor market. Therefore, hired labor is not considered in the model. recursive setting, where market substitutes may be obtained for family labor or home- produced goods, the household will determine labor demand independently of its tastes and household composition.8 Considerations such as the gender of the plot manager or the bargaining weight which determines a particular member’s income share shouldn’t be factored into production decisions. Thus, male and female household members allocate their time to crop production managed on their own field and on” the field of the other member, off-farm work, and home production.9 The production of crop qc is a function of G,(L,-"', Li’, Ai ), where G i(.) embodies the technology associated with a particular crop. The optimal technology choice available to a household is conditioned by its ability to access factor, commodity, and credit markets. These conditioning factors will be time-varying.lo Technology, defined by the level, intensity, and timing of input usage on a particular plot, plays a pivotal role in the assessment of whether households allocate productive resources efficiently. Although we would expect optimal technology choice to vary by crop, we would not expect optimal choice—or having access to the choice-to be sensitive to household parameters such as the gender of the plot manager. In this scenario, both allocative efficiency and the separability of agricultural factor demand decisions from See Singh, Squire, Strauss, 1996, and Benjamin, 1992, for a full treatment of separability and recursivity in agriculture household models. 9 It is possible that time allocated to one or more of these activities is zero for one of the members. I0 de Janvry, et a1 (1991) suggests that market failures are generally not pandemic, rather markets fail selectively for a particular household. Thus, a market failure occurs when the gain from utilizing a market is below associated costs. 7 household supply characteristics would fail.ll Consumption is comprised of goods produced on farm and goods purchased with proceeds generated by sales of tradeable crops or by off-farm income activities. Goods may be purchased for either private consumption or public consumption. Privately consumed goods may be defined as goods assignable to a particular individual whereas publicly consumed goods are not separable across individuals. Leisure, If and 1'“, is separable between the two individuals. Output prices are normalized to one. Thus, the household’s problem is to maxUm(cm,cf,z,lm,lf)+Auf(cm,cf,z,lm,If) subject to : Y = G (L,"‘, L,‘, A,) + G(L2"‘, LZ’, A2,) Z = 2 (2f , z'“) T f: (L,f + L2f+ qof+ zf+ If) m =(L,m +L2m+qom+zm+1m) P... C... + RC. s [(Yo - w... (L.'" + L?) - w. (Li + L25) + w... q."‘ + quo‘] A=A,+A2 Benjamin (1992) conveys an obvious example of labor demand and supply separation: “. . .with separation, the number of workers in Baron Rothchild’ s vineyards should . not depend on the number of daughters he has.” The separability condition may fail for a household when one or several factor markets are either nonexistent or malfunctioning. Previous studies using data from Afi'ica have documented the impact of missing labor markets on peasant household labor allocation (Barrett, 1996; Collier, 1983; Udry, 1998). Responding to labor market failures, farmers-- differentiated by their existing endowments of capital and labor--will utilize their labor according to specific household supply parameters, or a household shadow wage. Thus, these disparities in factor endowments result in labor marginal productivities that are widely dispersed across farms. Differentiated labor use intensity across farms of different size has been associated with the inverse farm size productivity debate. 8 The maximized value of U(.) is increasing in income. So, the problem can be solved by first maximizing income, or production with respect to labor, land, and technology, and then maximizing utility. The household’s production problem is to max [G(L,"‘, L,’, A,) + G(L2"‘, LZ’, A2.)] - wlm (le +L2'") - wf (L,f +L2’) s. t. A, + A2 = A This generates 4 productive efficiency conditions: (1) a Gm,m.L,‘.A,_)- wm =0 am (2) a GQImLLIfs AI.) " WI = O a L,‘ (3) BOILELILAZJ- w... =0 a L; (4) anguzng- w. =0 a L; (5) (19 = 50 6A, a 2 We can equate conditions (1 ) with (3) and conditions (2) with (4) to get the following two conditions: (1) a—GLLIEIEAlJ = (3) aflflzfidfi‘z.) (9le a Lz'“ (2) afifLiZLlLA. .l = (4) aflflLLAzJ The marginal product of men’s labor allocated to their own plots Should be e(Inivalent to what men allocate on women’s plots, the same for women’s allocation of labor. Solving the system of 5 equations and 5 unknowns from the first order conditions 9 we get the endogenous factors of labor (le, Lz'“, L,’, L}, A,, A2 ) as functions of (w, wm, A). Household members growing the same crop on similar plots should produce equivalent yields. This condition of constant returns to scale should hold if plots managed by household members were of the same size, comprised Similar levels and qualities of micro- and macro-nutrients, and were exposed to similar agro-climatic conditions. Households choose labor and land to maximize income. Thus, optimal production decisions depend only upon input prices and plot characteristics and they should be independent of household parameters. In other words, the choices made towards the production of the same crop occurring on separate plots, controlling for soil characteristics, within a particular household should be similar, irrespective of the gender of the plot manager or the preferences expressed by these two individuals. The process by which resources are allocated to the preferences of these two individuals is another matter. In a cooperative setting, allocation might be considered as a two stage process.12 First, income would be allocated towards public goods consumption, or to those items that are not identified uniquely with a particular member, and to each of the members for expenditure on their own consumption. The issue of jointness may be particularly complex when considering the polygamous household. The consumption of food, for example, would be difficult to identify with a particular member, but it is possible that it could be assignable to a wife and her children, a sub-unit of the extended household. ¥ I2 Browning,et al, 1996; Chiappori, 1988 and Chiappori, 1992 suggest the two stage income allocation rule as a plausible candidate for the intra-household allocation process. Chiappori (1997) generalizes the resource allocation process as a function of both members’ wages and noIl-wage incomes. 10 Second, each member spends her or his portion of total household income on nonpublic goods. The allocation of income across members would be based on multiple factors, including shadow wages or economic opportunities available outside of the household and predetermined agreements for income sharing concluded as part of the household formation process. However, the sharing rule should not influence household income generation decisions or member preferences. EMPIRICAL ESTIMATION The state of productive efficiency is determined exclusively by technology and the inherent characteristics of the inputs and fixed factors used to grow crops. When two plots of land are used to grow the same crop in a household, the only differentiation in outcome should result from differences occurring in soil characteristics between the plots. For the same crop, technology choice, which embodies the timing, intensity, and type of labor inputs, should be identical. ‘3 Therefore, the empirical content of the paper examines whether the deviation of plot yield from the mean yield of a household is related to the gender or status of its plot manager.l4 A general output supply equation is estimated to account for differences in technology use resulting from crop choice and for factors that condition a household’s ability to engage in market activity: (6) thi=BO+ 91 thi + 92 thi + I33 Vh + B4 Yc+ €th , Land quality may affect technology choice decisions. Therefore, if two household members were assigned plots of different quality, technology choice could vary over these two parcels of land. I4 Productive efficiency should also incorporate decisions of land allocation: Land should not be allocated on the basis of the gender of the plot manager. Rather, the household head should allocate land based on the marginal revenue product of the crops grown on each of the household’s land parcels. 11 where th, is output/hectare obtained on a given plot; X he, is a dummy variable capturing plot-size effects; Ghci is the gender of the individual who controls the plot; V b is a household fixed-effect dummy that restricts attention to the variation in yields across plots planted within a single household; y, is a crop dummy that controls for the impact of technology- specific crop effects; and Em is an error term that summarizes the effects of unobserved plot quality variation and plot-specific production shocks on yields. Similarly, an input demand equation is estimated for each type of household labor input and for selected non-labor inputs to examine whether differences in input intensities across fields within the same household may be attributed to the gender of the plot manager. If gender influences the underlying household decision rule in factor allocations, then [32 would be significantly different from zero in these estimations. The results are estimated separately for the two years. DATA The data used for this paper were collected under the International Food Policy Research Institute (IFPRI) and the Institut Senegalais de Recherches Agricoles (ISRA) study, Supply and Consumption Impacts of Agricultural Price Policies in the Peanut Basin and Senegal Oriental. The survey, covering approximately 300 households, comprised three years" of household panel-data collection and was designed to learn how changes in agricultural policy affect household behavior. Coverage was focused on the Peanut Basin, an area comprising one-third of the country’s land area and over two-thirds of its rural population. The data provide detailed information on rural and urban household consumption and production patterns, including both farm and off-farm activities. 15 The survey commenced during the 1988 harvest so detailed crop information are available for only two complete farm-year cycles. 12 Enumerators obtained data on labor and non-labor input usage on each plot throughout the farm cycle for two seasons. These efforts generated usable data on approximately 2700 plots.16 Data collection comprised 18 separate surveys on the following topics: household demographics; food consumption; purchases and sales related to crops and livestock; expenditures on all other services and products; cash transfers; household assets; individual net income from all economic activities; gross income and input costs; and detailed production data by plot for 1989/90 and 1990/91 crop seasons. Sample selection was based on an earlier reconnaissance survey that synthesized information on general characteristics of the area. Data Issues Plot-level Revenue This variable is the product of total output harvested per hectare on a plot and the average village1989 commodity price. These prices were used for both cross-section years to facilitate the comparability of results. A number of fields were planted with multiple crops which are not comparable to mono-cropped fields.17 Thus, these fields were excluded from the crop-specific analysis but were incorporated into the all fields analysis. Labor Inputs Detailed labor information is available from the survey on the hours 16 During the first year of the survey each plot was measured, but in the subsequent year only a subset of plots was measured directly or estimated. I7 Benjamin (1995) speculates that studies using a measure of aggregate value output to estimate the relationship between farm size and productivity could have led to a bias tOWard finding the frequently observed inverse relationship. The bias would be particularly ' sensitive when aggregate output comprises both high- and low-value crops and data on land qualiry are not available. If high quality land is more expensive-which is observed by the PYOducer- then efficiency would prescribe that the more expensive crops be planted on it. 13 allocated to each field by activity and for each type of labor input: household male, female, child, and owned animal equipment hours as well as for various types of hired or in-kind labor. Because hired labor is employed only sporadically by these households, I do not estimate the effects of hired labor usage on yield outcomes. Non-labor Inputs Although field applications of all inputs are detailed in the survey, usage of any particular input is not widespread. Accordingly, I estimate usage for only seed, manure, chemical fertilizer, and fungicide. With the exception of seed, I translated the non- labor input quantities into dummy variables and estimated their usage as a linear probability model because they were measured imprecisely. Commodities In addition to estimating the models on all of the relevant fields for each year, I selected millet, sorghum, and peanuts as representative crOps grown by men and women and provide separate results for fields cultivated with either millet or sorghum and for fields cultivated with peanut. These choices are useful because they typify a food staple grown for household consumption and managed by a household head, and a cash crop intended for market sale by both males and females. Peanut production accounts for the largest share of cash income from crop production, although some of the harvest could be reserved for consumption. Millet and sorghum could also be planted as cash crops, but it is more likely that they would be produced for home consumption. I combine the millet and sorghum fields to achieve more robust results. It is not possible to identify explicitly fields as either communal or personal. However, it is likely that a field planted with millet or sorghum and managed by a household head will be considered communal. Plot Size I transformed continuous plot size data into a categorical variable of plot- size quintiles. The grouped data elucidate the plot-yield relationship more clearly. 14 RESULTS Table 1 displays descriptive statistics of agricultural yields (value per hectare) and input intensities per hectare for the two survey years by gender of plot manager. In 1989, women generated more revenue per hectare than men, although the difference between these two groups was not significant. The reverse held true for men in 1990 and their gain over women’s average revenues was more substantial. The relative variation of men’s and women’s revenues between the two years may be explained by the distribution of crops farmed by the two groups across the two-year period. Peanut farming generates more value per hectare than other crops and in 1990 the number of fields allocated by men to peanuts represented 32.8% of all fields farmed by both men and women. In 1989, men’s peanut fields accounted for only 25.3% of all fields. Udry reported higher average revenues for women’s than for men’s fields in Burkina Faso, where the relative proportion of groundnuts farmed favored women (15.6% of women’s fields compared to only 5.1% of men’s fields). In contrast to the above mentioned variations in plot yield, the differences found in the average levels of inputs used by men and women over both years are stark. In both years, women farmed plots that were less than half of the area of men’s plots. Male labor and animal traction labor were utilized more intensively on male-managed plots while females used substantially more female labor and seeded their plots in greater densities. Men applied more manure, fertilizer, and fungicide on their own fields, but overall use was not high. 15 Mean Revenue, Area, and Input by Gender of Field Manager Table 1 _l989' 1.28.2 T- 1&9 M T- Men’s Women’s Statistic Men’s Women’s Statistic Fields Fields H,:u.=u, Fields Fields I1,,:u,,,=ur Ag Revenue 48864.6 51189.9 -O.97 31791.8 26782.8 2.354 per Hectare (45393.1) (44387.6) (3496.6) (33302.5) Area of Plot 1.007 .4353 18.7 .991 .436 16.2 (hectare) (.8625) (.3662) (.028) (.019) Male Lahor’ 156.27 88.5392 8.6 113.05 77.38 6.7 (hours per (185.62) (124.01) (113.19) (68.67) hectare) Female Labor 26.42 173.30 -7.8 15.03 81.52 -8.2 (hours per (70.76) (416.96) (40.98) (151.83) hectare) Child Labor 85.00 85.15 -0.02 68.44 57.90 1.8 (hours per (166.62) (148.62) (86.98) (97.12) hectare) Animal Traction 49.6717 40.1506 2.9 44.17 37.16 3.1 (hours per (66.13) (57.43) (44.09) (32.37) hectare) Seed 39.38 63.87 -8.9 47.89 79.93 -2.8 (kg/ hectare) (63.87) (56.76) (146.93) (192.66) Manure Use .064 .022 4.2 .07 .005 4.8 (1 if used; 0 if (.24) (.15) (.26) (.075) not) Fertilizer .021 .004 3 .4 .089 .081 0.46 (1 if used; 0 if (.1451) (.063) (.2849) (.2732) not) F ungicide .2086 .1218 4.6 .4531 .4208 2.2 (1 if used; 0 if (.4065) (.3273) (.016) (.022) not) Note- Standard deviations are in parentheses. 'Data was determined not to be suitable for pooling. Chow tests are provided in the appendices, tables D 1 -D3. 2 Harvest and post-harvest labor activities are not included in labor hours for any type of labor. l6 Leaving aside differences in input intensities, other factors could explain variations in yield outcomes. '8 Without controlling for these factors, it would be difficult to disentangle outcomes that are linked to market phenomena occurring across all households from those that are linked to the decision patterns concerning resource allocations to different members within the same household. Therefore, it’s important to examine yield variations between men and women farming the same crop within the same household during the same year. Tables 2a and 2b provide evidence that plots controlled by women produce substantially lower yields. The All Crops columns in both tables report estimates of equation (6), yield differences for all of men’s and women’s fields while controlling for household and crop effects. Referring to the Column (2) Specification under All Crops, women generated 35% less revenue per hectare from their plots than did men on average in 1989.19 This striking difference in disparity of outcomes by gender was repeated in 1990. Women generated 27% less then the average yield per hectare found on men’ 5 plots. These estimates provide further justification to Udry’s claim that productive household resources are not being allocated across members in a pareto-efficient manner”. Udry provides several explanations contributing to differences in men’s and women’ S yields within the same household. One, systematic variations in nutrient soil quality across men’s and women’s plots would exacerbate differences in yields by gender. Two, customary crop choices by gender would generate different yield outcomes. Three, the prevalence of inefficient land and labor markets would create distortions across households in their capacity to use factors of production efficiently resulting in different factor shadow prices. Four, nonexistent credit markets could distort factor shadow prices across time. All of these factors could be supported within the Senegal context. 19 The gender differential in yield is computed as the percentage difference from average household yield. 20 Udry found that women’s yields were reduced by 30% of the average yield on plots farmed in Burkina F aso. 17 The Peanut and Millet/ Sorghum columns restrict estimates of gender-differentiated yields to fields cultivated exclusively with peanut, millet or sorghum. Differences in yield outcomes between men’ s and women’s fields remain substantial. Female peanut cultivators produced 24.4% less output per hectare than the average peanut yield in 1989 and 19.7% less in 1990. Yield differentials between male and female cultivators of millet and sorghum fields provide even more stark contrasts. Females growing millet and sorghum produced 52.7% less output per hectare on average than their male kin. In 1990, this production loss climbed to 63.5%. The gender effects on yields reported above control for plot size - yield effects.” All of the 1989 specifications incorporating plot-size quintiles and the 1990 all crops specification demonstrate a strong negative relationship between plot size and yield. However, unobserved differences in input intensity, plot characteristics, or prices may be correlated with plot size and/or the assignment of plots by the household head to other members. If any one or combination of these factors underlies the inverse plot size - yield relationship, then plot size becomes endogenous in the above specifications. For example, cultivators of smaller parcels of land may use inputs more intensively. Most probably, smaller parcels of land would be identified as personal plots compared to the larger ones identified as family, or communal plots. Input differences across personal and communal plots may ascribe to differences in the quality and timing of labor inputs. Individuals would be inclined to allocate more efficient units of labor to their own plots 21 The frequently observed inverse relationship between size and productivity in the literature refers to farm size and not plot size. 18 compared to the labor they expend on communal plot production. Therefore, communal plot managers would have to allocate time to the monitoring and supervision of family labor to obtain equivalent labor inputs. Monitoring and supervision time represent additional costs to the communal plot manager. Household heads may respond to variations in land quality by dividing land of higher quality into smaller parcels, or they may own noncontiguous parcels throughout the village that were sized according to the underlying characteristics. If so, then unobserved soil quality would be inversely correlated with plot size and the household head may be assigning plots nonrandomly on the basis of soil quality. In this scenario, the gender and plot-size coefficients would be biased downward when soil quality is omitted from the equation. In contrast to the above notion that small plots embody superior soil characteristics, plot size may also be correlated with distance from the household. The afore-mentioned relationship may describe plots that are located only within some concentric interior. Although no information about the distance of plots from the household exists in this data set, previous Senegalese studies depict land belonging to a particular household as being organized within concentric circles around the compound.22 Women are allocated parcels of land that are located towards the periphery of the household’s holdings. Not only would the large distance imposed on the managers of these plots represent an additional cost, but 22 See John Waterbury , “The Senegalese Peasant: How Good is our Conventional Wisdom?” in Gersovitz and Waterbury, 1987, for more details on rural livelihoods and the c_°13ir1g mechanisms employed by Senegalese households to confront prevalent conditions of risk. Waterbury notes that women’ 5 personal fields, along with those provided to non-family labor, are located the farthest away from the household and considered ‘bush fields’. The reference suggests fields of marginal quality. 19 these plots would be of lesser quality. Women would be farming plots that are not only smaller than the average Size of a household plot, but are of inferior quality compared to the average parcel of land owned by a household. Thus, when I control for plot size I may be comparing yields on male- and female- managed plots that exhibit substantial differentials in quality. This comparison would inflate the gender-differentiated effect in yield outcomes. Without controlling for crop or household effects, Table 1 showed that women farm on substantially smaller plots than men. If it is the case that women are allocated smaller plots on a systematic basis and smaller plots produce higher yields, we would expect the impact of gender on yield variation to decrease when controlling for plot size. The Column (1) specifications in Table 2a and Table 2b report estimates of gender yield differentials without plot-size quintile dummies but control for crop and household fixed effects estimates for all fields and household fixed effects for the specific crop estimates. Comparing these column estimates to those that control for plot size, I find that the gender effect is smaller when the inverse plot size relationship holds true. In 1990, the inverse plot size - yield relationship did not hold for peanut fields. The gender coefficient is smaller in each of the Column (1) specifications compared to the gender coefficient reported in the corresponding Column (2) specification because it is picking up the average differential in yields associated with the inverse Size effect. Though smaller, the Column (1) gender coefficient identifies the total gender effect, whereas the Column (2) coefficient a partial gender effect. On average, women are allocated smaller parcels of land--which is further substantiated by the reduced form estimates of input intensities discussed below--and the total gender effect captures this yield effect. I attempt to disaggregate the average effect of plot size on gender by estimating the 20 38.85 E 0.8 32.3.; ”$35.83.. 5 8:33..-. we o=_m> 8293< No.02 mm: mm: a: R: 3m. 2:. 222... .o 52.32 3. mm. 3.. a. 3.. 2. N2 .8... SN 8...... :2 8...... 2.: 8.55.5 a... 8...... gm .8... m2 8...... a... 8228.. .8... 8.. 8...... 8.. 3.5.55 E. mutmtfim Am 3.5%.” 2.8m: 383 228%..532 w< Co :82 G... .V .8... and .8. .v G . .9 3...... 8.32 a... .2: 3.38.: 2.3.3 ~23? an. . 28 .5238 83.8 and :3. 8.3.2- 3.. .48- a. . 82. 2:23 3 2...... .33 5.8 3.32:. 8.33. 3.842- 2:23 3 $2. 828 GS. SASS- 3.22.- 8. 8.....- 2:23 3 33... 3...... ES :22... . - ”$88- 2.3 .2- 2:23 2N Nona SE 8m... 6...: 5.0 5.9 :3. 5.3 8.22.- 3.33. a... .22. 3.3%.- 8.3:..- .383- .330 a. 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These results, along with those that attempt to establish whether similar partial effects may exist across household generations, are presented in Tables 3a and 3b. The estimates control for both crop and household effects. The gender-plot size interactions are not jointly significant which suggests that the pattern of yield differences by plot size does not vary according to the gender of the field manager. Therefore, there is no empirical evidence to substantiate the claim that women sustained lower yields on land parcels of similar size than men who planted the same crop and lived in the same household. With the exception of one gender-plot interaction term in 1989, the interaction terms are neither singularly significant nor jointly significant for either year. The test statistic evaluating the strength of the gender-land relationship in 1989 is distributed as F(4, 1364) and has a value = 1.69 (p = 0.15). The 1990 test statistic is distributed as F(4, 1008) and has a value = 0.14 (p = 0.97). The results demonstrate that the inverse size-yield relationship do not affect male- and female-managed plots differently. Although it is not possible to control for unobserved differences in soil quality or location between men and women’s fields, these results suggest that men and women farm plots of relatively similar characteristics. If one is concerned about the nonexogenous nature of plot size allocation and gender, Stature within the household may suggest a potential source of additional endogeneity: Assuming that women are allocated the smallest plots, it is plausible that household heads 1‘ eServe the largest and most productive plots for themselves. Therefore, column (2) in these tW0 tables estimates the impact of headship status on yield to identify whether systematic biases occur between the head and other male members. These estimates were based only on 23 Table 3a OLS Fixed Effects of Plot-Yield Relationship 1989-A11 Crops (Household and Crop Effects) (l) (2) Gender-Plot Size HH Status- Plot Size Effects Interactions Only Male—Controlled Fields All Fields Ag Revenue Ag Revenue (per hectare) (per hectare) Nonhead -14400. 140 (0= HH head, (4.54) l=other males) Plot size: 2“" quintile -10106.88 42785.34 (2.18) (2.73) 3rd quintile -17357.73 -l977l.98 (3.85) (4.28) 4"I quintile -25190.48 -29088.86 (5.63) (6.24) 5‘h quintile -3 1319.55 -36493.21 (6.82) (7.40) Gender -13504.62 (2.71) 2"d * gender -l2698.36 (1.93) 3" "‘ gender -2769.70 (0.41) 4‘h * gender 5274.65 (0.59) 50‘ "' gender -2518.48 (0.22) Constant 56359.99 73744.13 (2.09) (2-75) F- Statistics HH Dummies 1.87 [0.00] 1.71 [0.00] Plot Dummies 14.19 [0.00] 15.86 [0.00] Gender“ Plot Size 1 .69 [0.15] R2 .39 .44 Number of Fields ISYL 11 10 24 Table 3b OLS Fixed Effects of Plot-Yield Relationship 1990—All Crops @ousehold and Crop Effects) (1) (2) Gender-Plot Size HH Status- Plot Size Effects Interactions Only Male-Controlled Fields All Fields Ag Revenue Ag Revenue (per hectare) (per hectare) Nonhead -8258.433 (O= HH head, (3-56) l=other males) Plot size: 2"" quintile -4127.54 -4446.767 (129) (1.31) 3rd quintile -401 1.37 -3467.427 (1.18) (0.94) 4th quintile -6459.73 —6608.929 (2.06) (1.96) 5th quintile -8143.01 -10744.570 (2.49) (2.93) Gender -9860.95 (2.86) 2"‘1 * gender -2924.82 (0.65) 3rd “ gender -999.56 (0.19) 4‘h " gender -33 89.45 (0.59) 5'“ * gender 4565.88 (0.22) Constant 38252.62 41677.19 (3.22) (3.04) F- Statistics HH Dummies 5.20 [0.00] 3.70 [0.00] Plot Dummies 1.80 [0.00] 2.66 [0.03] Gender‘Plot Size 0.14 [0.97] R2 .58 .59 Number of Fields 1 178 845 25 fields managed by men. Nonhead males, like females, were found to generate less yields per hectare than the residing head. For both years the plot quintile dummies are jointly significant and in 1989 the inverse relationship between plot size and yield of male cultivators is strong. The third column in each of the tables presents yield estimates on the combined sample of male and female plots with plot-size dummies and gender-plot interactions. With the inclusion of the nonhead dummy in this specification, the gender coefficient increases in magnitude because it is picking up the differential in yields between female-managed plots and those under the control of the household head. Thus, both the gender and the status of the plot manager moderate the effect of the inverse size-yield relationship associated with these plots. Gender-Differentiated Input Intensities Allocative efficiency, a basic condition of pareto efficiency, is achieved by equating the marginal value product of inputs used in production to their unit costs. Thus, allocative inefficiency stems from a failure to use profit maximizing levels of inputs. Cultivators producing under constant returns to scale who are confronted with similar production technologies and factor input prices should apply inputs in an equally intensive fashion. Thus, assuming that these conditions hold, efficiency in production implies that input intensities should be equalized in equilibrium across male- and female-managed plots within the same household. Access to factor inputs should not be determined on the basis of one’s gender. Table 4a displays estimates of the labor intensities used per hectare on all of men’s and women’s fields. These results corroborate Udry’ s findings: With the exception of female labor, all labor inputs on a per hectare basis are used much less intensively on female- 26 managed plots in the same household. Women allocate more of their own labor--about 130% more hours--to their own plots than to those in the household managed by men. Conversely, women farmed plots with less of every other type of labor input. On average, women’s plots received 71.4% less hours of male labor per hectare than men’s plots in 1989 as displayed in column 3. The household’s children contributed 33.5 % less hours of their labor to female plots. Animal traction labor, which is most often combined with male labor, was provided 40% less per hectare on female plots.23 Moreover, the negative differential in the allocation of labor inputs revealed on women’s plots could affect both the level and timeliness of application of other inputs. Thus, these disparities could have a negative impact on both the marginal productivity of labor used to complete certain types of agricultural tasks, and of other inputs used, such as fertilizer and seed. Since 1960, animal traction has been considered one of the most important catalysts for productivity growth in the country and was the agricultural technology most singularly adopted by cultivators throughout the Peanut Basin (Kelly, et a1 1996). Although originally considered as a technology to raise growth via extensification, the real gains come from using animal traction to increase intensification by applying other inputs more efficiently. Animal traction can be used throughout the agricultural cycle - beginning with land preparation tasks and finishing with harvesting - to increase the marginal productivity of other inputs. For example, animal traction increases the effectiveness of fertilizer and manure applications. Although used sparingly in Senegal, greater benefits from the application of fertilizer and 23 Animal traction labor is comprised of both human and animal labor inputs, and thus is reported jointly. 27 28 82. 82 82. 82. ...-2. 82. 8.. 82. 2.l.22 ...-I... 2822 mm. 8. mm. 8. .2. 8. ..2. mm. .2 8...... 82 8...... 2...: 822.....8 8...... 8.2 8.82.5 .2... 8...... 2.8 822.22 8...... 222 822.22 8...... 82 8......82 8...... ... 2 822.222 2222.... m: 822.52-... 2:. 2:. 8.2 8.2 .22. .22. 222 ...22 m... .82.... :82 .22. 8.... .3. .. .82. .22.... .8... .22.... ...... . :22 82: :28 2222 8...- 222 2.2250 .222. .22.. .. ...... .8... 22....- 22... .- 822.- 2222- 2223 an .222. .85 .222. .222. 2.2..- 822- .2....- 8.8- 2223 .... .22... .22. .22. .82. 222..- 8. 8- 22: .- 2......- 2..23 ...... .....2. .82. ....2. 82... 8. . 2- 3.2.- ..22- 8..- 2223 ....N .onw “CE .2... 82 .. .82. .22.... .222. .222. ..2: 82.2. :2.- 82- 8.8- ..22- 2222. 822- 8.8 822 .2220 .N. ... .m. ... .N. ... .8. ... 22.8: .2. 228...: 3.. 9.88: 3.. 288: .2. 22.2.; .92.... .83 2...... .22.... 222 8...... 22...... .288. ...:u ...... 22.83:. 3.2... .2128. 82.25.... 2...... .52... .2 2.8.... .82.... 2.0 .... 2......- manure could be obtained if these substances are worked deeper into the soil than possible by using only human labor to move and spread the inputs. Animal traction also enables cultivators to complete agricultural tasks within shorter timeframes and thus follow prescribed dates that fall within narrow windows of opportunity to achieve optimum yields. Combining animal traction with seeding tasks ensures that plots will be seeded within the suggested timeframe for planting. Research conducted in Senegal found that peanut yields are extremely sensitive to planting dates and decrease for each day that seeding is delayed beyond the first seasonal rain. When cultivators use animal traction to perform harvesting tasks they can reduce the risk of peanut crop failure. With the introduction of a short-season peanut variety, it has become necessary to harvest the peanut crop immediately after it has matured because it will regerrninate if it is exposed to additional rain. Using animal traction enables cultivators to harvest their fields more quickly. Table 4b reports input labor demand estimates for only monocropped peanut fields. Labor use is significantly differentiated by gender of the plot manager. On average, female cultivators receive 75.1% less male labor per hectare and 37.3 % less animal traction labor per hectare than male cultivators. Even more telling, the household’s children spend significantly less time on women’s plots than on men’s plots. Possibly devised as a strategy to compensate for these other labor deficits, women allocate 106.6% more labor hours per hectare to their own fields than to those managed by men in the same household. Table 4c reports estimates of labor intensities for millet and sorghum fields in 1989. Gender-based differentials of male and child labor hours on these fields are similar to those found on peanut fields. However, animal traction is used even less intensively on women’s millet and sorghum fields than women’s peanut fields. On average, 73% fewer labor hours 29 .22 .22 .22 .22 .22 .22 .22 .22 .22... .2 .3522 22 22 2... 2... 2... .... 22. .2 .... 8...... 22 8...... :2 8...... ...2 8...... 2...2 3.5.5.2. ...... 8...... ....2 82.2.8.2 8...... 2.2 82...... .2 8...... .. .2 822.222 8...... 22.2 822.222 8.5.2.... .... 0.2.2.2 .. 8.2.. 2.2.. ...22 ...22 222. 2.22. .2.. .2.. .... .2.... .2 28.2 .222. .222. .22... .22... .8... .2.... 8...... 8.... 2....2. ..222 22.2.2 2228 ......2 2......2. 2.2.. 2... .2288 82.... .22.... ..2... .222. .. .22- 2.222.- 8.2...- 2.2..- 22...... ..2 .222. ....2. .2. .... .82. ..222- .22...- 22.28- 22....- 2.......... .... .. ..2. 82.2. .222. .222. .2. . 2- 2....2- ..2. .2- 8.2- 22...... ..2 .22... ..22. .28... .....2. 2......- ....22- 22.2- 22.2- 2.22.... ....2 ”on? «CE .8.... .2. .2. ....2. .8... 82... .222. .222. .22.. ..2..- 222- ......2- ..2.22- 22.8- 22.2- .2... 22.22 .2250 .2. ... .2. ... .2. ... .2. ... 82.8... .2... 288.. .2. 2832...... 288: .2. cores-.... BEE< .8...... ...—EU .33 0.2.). 3...... 22:5... .28.... 22.88% .2.... 328.222... momumE—Oufl— «BA—n: hag—a..— .uc mouaamumm muooum ficfimrfl WHO 5. 03.2. 30 of animal traction were allocated to women’s fields than men’s fields in the same household. As suggested above, the benefits of animal traction may be indirectly transmitted through the more efficient application of other inputs such as fertilizer. In particular, cereal crops are more responsive to fertilizer than are peanuts (Kelly, 1993). Therefore, the yield return that millet and sorghum cultivators experience from using fertilizer would be less for those who are female because they use significantly less animal traction labor. Table 4d reports estimates of non-labor input intensities for all fields in 1989. On average, women are allocated plots that are 65.8% smaller than ones farmed by men in the same household. While a negative plot size - yield relationship was found, women produce less output for every size category than men when controlling for plot size effects. The estimates show that, on average, women seed their plots less intensively than males in the same household. Access to certified seed stocks, particularly for peanut farming, has been identified by Senegalese farmers as a critical constraint in increasing yields. Until 1985, seed was formerly distributed in a program that enabled farmers to exchange part of their harvest in the current period for seeds to be used in the following - agricultural season. After the program was discontinued by the government, cultivators could only obtain new seed with either cash or credit purchases. This change in policy forced some cultivators —namely women and unmarried sons living in the household within their extended family networks—to switch from growing peanuts as a cash crop to cereals. Thus, the estimates of seeding densities would under report the differential impact that women would experience in obtaining seed. For those women who would have been most constrained in their capacity to obtain reliable peanut seed, it is likely that they were forced to farm alternative crops. 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