Labor Supervision and Institutional Conditions: Evidence from Bicol Rice Farms

摘要

This article analyzes labor supervision activities reported in a survey of rice farmers in the Bicol region of the Philippines. We present a theoretical model that relates supervision intensity to institutional conditions. We estimate a supervision intensity equation and control for the decision to hire labor, the decision to supervise hired labor, and the type of the labor contract. The empirical estimates use different village-level spatial and demographic indicators as proxies for institutional conditions. The results are consistent with the prediction of the theoretical model that supervision increases with weaker institutional conditions.