Natural Capital and Labor Allocation

Abstract

Many poor rural households exploit natural resources, and losses in natural capital may affect their participation in outside employment. The analysis of this article confirms that both mangrove area and the type of mangrove-dependent activity pursued by coastal households in Thailand have significant influences on the participation decision of adult males and females, the wages that they receive for outside employment, and the number of hours worked. Controlling mangrove deforestation could reduce the negative impacts on household labor allocation, but it will require a new institutional framework for coastal mangrove management inducing cooperation between government and coastal households. Investments in female education and training could improve their outside employment prospects and wage rates.