Household characteristics are commonly used to explain variation in smallholderefficiency levels. The underlying assumption is that differences in intended behaviorare well described by such variables, while there is no a priori reason that this is thecase. Moreover, heterogeneity in farmer...

This paper evaluates how efficiently farm households allocate labor between farm and off-farm activities. It estimates farm and off-farm labor supply functions to determine the factorsthat influence labor allocation. Both the shadow wage and the off-farm wage rate are includedas regressors in...