Abstract
This article considers wage – labour activities by agricultural households in Nicaragua. It analyses the role of: (1) comparative advantage as determined by individual and household characteristics; and (2) agricultural conditions and market imperfections, in shaping wage – labour supply. An econometric specification is developed which allows for random household-specific effects. Results reveal that non-agricultural wage work is largely determined by comparative advantages, whereas agricultural wage work is used to deal with a number of agricultural conditions and market imperfections.
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