**<u>Table 5: Test for efficiency differences between own labor and hired labor</u>**

||**1982-99**|||**1999-08**|||
|---|---|---|---|---|---|---|
||**FE**<br>**(1)**|**FE (IV)**<sup>**a**</sup><br>**(2)**|**FE**<br>**(3)**|**FE (IV)**<sup>**a**</sup><br>**(4)**|**FE**<br>**(5)**|**FE (IV)**<sup>**a**</sup><br>**(6)**|
|Log of land|0.348***|0.420***|0.364***|0.350***|0.341***|0.357***|
||(16.181)|(14.645)|(16.681)|(16.084)|(17.047)|(11.480)|
|Agriculture wage|-0.475***|-0.260**|-0.171***|-0.211***|-0.195***|-0.197***|
||(-11.569)|(-2.543)|(-2.941)|(-3.708)|(-3.665)|(-3.223)|
|Non agriculture wage|-0.057|-0.205***|-0.092*|-0.191***|-0.195***|-0.155*|
||(-1.480)|(-4.572)|(-1.839)|(-4.050)|(-4.241)|(-1.819)|
|Price of fertilizer|<br>-0.004|<br>-0.019|<br>0.151***|<br>0.152***|<br>0.149***|<br>0.149***|
||(-0.190)|(-0.755)|(7.295)|(7.929)|(7.898)|(7.467)|
|Price of bullocks|<br>0.200***|<br>0.092***|<br>0.006|<br>-0.021|<br>-0.036|<br>-0.050|
||(10.378)|(3.109)|(0.142)|(-0.511)|(-0.994)|(-0.946)|
|Head’s age|<br>0.936|<br>1.005|<br>-2.094|<br>-2.416**|<br>-2.404**|<br>-2.684**|
||(1.030)|(1.026)|(-1.635)|(-2.204)|(-2.054)|(-2.144)|
|Head’s age squared|<br>-0.109|<br>-0.126|<br>0.274|<br>0.316**|<br>0.314**|<br>0.350**|
||(-0.903)|(-0.984)|(1.629)|(2.201)|(2.044)|(2.135)|
|Head’s education|-0.023|-0.045|0.001|-0.007|-0.011|-0.009|
||(-1.035)|(-1.493)|(0.066)|(-0.380)|(-0.549)|(-0.471)|
|Head is female|0.141*|0.253**|0.095|0.067|0.085|0.119|
||(1.757)|(2.494)|(1.262)|(0.975)|(1.242)|(1.233)|
|Log of household size|0.149***||0.031||0.015||
||(4.114)||(0.753)||(0.384)||
|Share males 14-64 years old|-0.033||-0.090||-0.106||
||(-0.359)||(-0.865)||(-1.115)||
|Share females 14-64 years old|<br>0.108||<br>0.035||<br>0.034||
||(0.934)||(0.284)||(0.299)||
|Share males >64 years old|<br>0.024||<br>0.018||<br>0.003||
||(0.114)||(0.088)||(0.013)||
|Share females >64 years old|0.242||-0.202||-0.232||
||(1.236)||(-1.092)||(-1.370)||
|Family to total labor ratio|<br>-0.264***|0.283|<br>0.019|0.118|||
||(-15.180)|(1.308)|(0.662)|(0.655)|||
|Family to total labor ratio|||||-0.045|-0.314|
|(pre-harvest)|||||(-1.273)|(-0.561)|
|Family to total labor ratio|||||0.006|0.359|
|(harvest season)|||||(0.178)|(0.625)|
|<br>Constant|3.133*|3.795*|8.115***|10.038***|<br>9.992***|<br>10.463***|
||(1.827)|(1.884)|(3.326)|(4.773)|(4.483)|(4.477)|
|Observations|<br>8,314|<br>8,314|<br>7,400|<br>7,400|<br>7,400|<br>7,400|
|R-squared|0.341|0.227|0.236|0.255|0.259|0.229|
|Number of farmers|4,925|4,925|4,439|4,439|4,439|4,439|
|Hansen J stat. (overid test )||11.603||4.22||3.396|
|Chi-sq P-val||0.0206||0.3771||0.2725|
|Kleibergen-Paaprk LM stat.||28.075||35.3||0.3345|

Source: Authors’ computation from 1982, 1999, and 2008 ARIS-REDS surveys. Notes: Dependent variable is the log of total labor days used for agricultural production. All specifications include farmer fixed effects and year fixed effects. Absolute value of asymptotic t-ratios are in parentheses. FE = fixed effects; IV = instrumental variable.a Instruments include household size, share of prime male workforce, share of prime female workforce, share of elderly male workforce, and share of elderly female workforce. All prices are in logarithms.

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