Abstract

This article synthesizes the literature on household labor allocation. The review reveals that development policies impacting on the labor market favor men over women. Male favoritism also occurs in household decision-making. Data from the 1988 Rural Labor Force Survey were used to examine rural household labor allocation in 1988 and the extent of female and male participation in home and market production and the degree of labor market discrimination against women. It is argued that the standard neoclassical model of economics does not recognize the unequal bargaining power of each member of the household in arriving at a solution to the joint welfare maximization problem. Women's position is expected to worsen during economic development. Women will have less than full participation in the labor market. Women's distinct role in household welfare provision is often disregarded. Development policy mainly focuses on market activities where women hold few positions. Labor allocation in the empirical analysis pertains to the mean hours per week in farm activities, household activities, schooling, and paid or unpaid non-farm work. Findings indicate that average earnings were lower for females than males and that returns to education and training were higher for males than females. Wage discrimination accounted for 30-66% of the earnings gap between rural men and women. Women faced discrimination on their returns to human capital and occupational choices. The concentration of women in low-paying jobs accounted for 21% of the wage gap. Women's lower education accounted for over 10%. Findings suggest that Kenyan households respond to market incentives. Women worked longer hours than men and contributed more to household welfare. Policy should focus on models of household provisioning and not on a joint utility function. Policy should encourage households to revise labor allocation strategies.

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