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The Effect of Religious Constraints on Individual Labor Supply

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  • Guillermo Cabanillas-Jiménez

    (Universidad de Alcalá (UAH))

Abstract

We study the effect of religious constraints on individual’s labor supply decisions in the context of Ramadan, one of the central pillars of Islam, consisting of an entire lunar month of fasting from sunrise to sunset. Using household panel data from Malawi for the years 2010, 2013, and 2016, we find that females reallocate their time, from their jobs to household work. For males, we do not find such reallocation of hours, as they increase both, their hours worked at their jobs but also in the household. As a robustness check to our results, we use household data from Bangladesh to support the estimates on the extensive margins, where we do not find any effect on labor force both for females and males or the likelihood of working during Ramadan. These findings show that we need to go beyond general beliefs that labor supply goes down, but individuals keep working at home or more hours overall, when religious constrains appear.

Suggested Citation

  • Guillermo Cabanillas-Jiménez, 2024. "The Effect of Religious Constraints on Individual Labor Supply," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(6), pages 1398-1447, December.
  • Handle: RePEc:pal:eurjdr:v:36:y:2024:i:6:d:10.1057_s41287-024-00643-y
    DOI: 10.1057/s41287-024-00643-y
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    More about this item

    Keywords

    Labor supply; Ramadan; Hours worked; Wooldridge correction;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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