Modern rice technology and regional wage differentials in the Philippines |
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| Authors: | Keijiro Otsuka Violeta G. Cordova Cristina C. David |
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| Affiliation: | 1. Agricultural Economics Department, International Rice Research Institute, Los Baños, Laguna Philippines;2. Faculty of Economics, Tokyo Metropolitan University, Meguro, Tokyo 152 Japan;1. Environmental Futures Research Institute, Griffith School of Environment, Griffith University, Nathan, Qld 4111, Australia;2. Environmental Research Department, Alcoa World Alumina Australia, Huntly Mine, P.O. Box 172, WA 6208, Australia;1. Dept. of Economics, B.K.C. College, Kolkata, India;2. Dept. of Economics, University of Calcutta, Kolkata, India;1. Rubber Research Institute, Chinese Academy of Tropical Agriculture Sciences, Haikou, Hainan 571101, China;2. Institute of Scientific and Technical Information/Hainan Provincial Key Laboratory of Practical Research on Tropical Crops Information Technology, Chinese Academy of Tropical Agriculture Sciences, Haikou, Hainan 571101, China;1. Sustainable Impact Platform, International Rice Research Institute, DAPO Box 7777, Metro Manila, Philippines;2. School of Water, Energy & Environment, Cranfield University, Cranfield, Bedford, MK43 0AL, UK;3. Crop, Livestock and Environment Division, Japan International Research Center for Agricultural Sciences, Tsukuba, Japan;1. Department of Mathematical Modelling, Statistics and Bioinformatics, Ghent University, Coupure Links 653, B-9000 Gent, Belgium;2. Laboratory of Environmental Toxicology and Aquatic Ecology, Ghent University, Coupure Links 653, B-9000 Ghent, Belgium;3. Department of Soil Science, Visayas State University, 6521 Baybay, Leyte, Philippines;4. Institute of Tropical Ecology and Environmental Management, Visayas State University, 6521 Baybay, Leyte, Philippines;5. National Institute for Applied Statistics Research Australia (NIASRA), University of Wollongong, Australia;1. IRD (Institut de Recherche pour le Développement), UMR Eco&Sols, 2 Place Viala, 34060 Montpellier, France;2. Land Development Department, Ministry of Agriculture and Co-Operative, Phaholyothin Road, Chatuchak, Bangkok 10900, Thailand;3. CIRAD, UMR Eco&Sols, 2 Place Viala, 34060 Montpellier, France |
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| Abstract: | Fear has been widely expressed that the modern rice varieties have created large disparities in regional income distribution, as the productivity gap between favorable and unfavorable rice-production environments widened due to differential technology adoption throughout South and Southeast Asia over the last two decades. Technology affects the income of farm population directly through its effects on productivity and factor use, and indirectly through its effect on factor prices. In particular, the ultimate distributional impact of modern varieties will critically depend on the interregional labor-market adjustments through migration in response to regional wage differentials created by the differential technology adoption, since labor is the main resource of the majority of the rural population. We studied favorable and unfavorable rice-growing villages in the Philippines, and found that adoption of modern varieties during the 1970s was positively related to population growth rate. Contrary to popular belief, no association was observed between wage rates and adoption of modern varieties as of 1986. These findings support the hypothesis that the differential adoption of modern rice varieties induced interregional labor migration toward equalization of wage income across different production environments. |
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