Valuing Changes in Time Use in Low- and Middle-Income Countries

Research output: Contribution to journalArticle

Abstract

Valuing changes in time use is often a critical element of economic analyses of development projects. In this paper we review the literature on the monetary value of time in low- and middle-income countries and find support for a commonly used benchmark of 50% of after-tax wages for time changes in activities in the informal sector, such as collecting water or traveling to health clinics. We offer recommendations to analysts who are conducting benefit-cost analyses in these settings about what methods they can use to estimate the value of time. These include a benefits transfer approach and also a relatively simple stated preference approach that might be deployed in a specific context if the project recommendation is sensitive to the assumption of the value of time or if the distribution of the benefits of time savings is especially important.

Bibliographical metadata

Original languageEnglish
Pages (from-to)51-72
Number of pages22
JournalJournal of Benefit-Cost Analysis
Early online date28 Dec 2018
DOIs
Publication statusPublished - 2019