Valuing Changes in Time Use in Low- and Middle-Income Countries. (19th December 2018)

• Record Type: Journal Article
• Authors: Whittington, Dale; Cook, Joseph
• Editors: Robinson, Lisa A.
• Is Part Of: Journal of benefit-cost analysis. Volume 10(2019)Supplement 1
• Page Start: 51
• Page End: 72
• Publication Date: 2018-12-19
• Subjects: J22, -- O22; benefits transfer, -- development, -- environment, -- health, -- international, -- transportation, -- value of time; Cost effectiveness -- Periodicals; 658.1554
• DOI: 10.1017/bca.2018.21
• Languages: English
• ISSNs: 2194-5888

Abstract

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.