Rigidities in Rural Labor Markets--An Empirical Test

Montgomery P Pereira and Daniel Sumner

The Review of Economics and Statistics, 1990, vol. 72, issue 4, 569-77

Abstract: The presence of potentially binding constraints in rural labor markets is investigated by examining spillover effects on land market participation decisions. Farm and household data from ICRISAT village level surveys are used in a multinominial logit model that accounts for the simultaneous nature of the land and labor market participation decisions. Estimated parameters and likelihood ratio tests indicate that except for the presence of potentially binding constraint on the supply of female labor off the farm no other evidence of binding constraints is present in these villages. Copyright 1990 by MIT Press.

Date: 1990
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