摘要：The paper aims to measure transaction costs and its effects on labor market participation and on wage earnings. Theobserved differences between buying and selling prices of rice across households are used to calculate transaction costsindices for villages which are incorporated into the standard labor market participation and Mincer wage equations.The estimates indicate that transaction costs may be a source of the income differentials between (a) the landed andthe landless, (b) the rural and the urban areas, and (c) the males and the females. Furthermore, biases can be notedin the regression coefficients of estimates that do not control for transaction costs.
