HOUSEHOLD BEHAVIOR WITH IMPERFECT LABOR-MARKETS

A household model with differential asset endowments and idiosyncratic transactions costs in accessing labor markets is developed to (1) exp lain membership of farm households to alternative labor regimes (selle rs, employers, or self-sufficient in labor), (2) test for recursivity between production and consumption decisions selectively by labor regi me, and (3) identify the determinants of differential labor productivi ty across labor regimes. The model is applied to a 1994 household surv ey of the Mexican land reform sector.