Can Labor-Market Imperfections Explain Changes in the Inverse Farm Size–Productivity Relationship? Longitudinal Evidence from Rural India

Klaus Deininger, Songqing Jin, Yanyan Liu () and Sudhir Singh

Land Economics, 2018, vol. 94, issue 2, 239-258

Abstract: We use a large national farm panel from India from 1982 to 2008 to show that the inverse relationship between farm size and output per unit of land weakened significantly over time. A key reason was the substitution of capital for labor in response to nonagricultural labor demand. In addition, family labor was more efficient than hired labor in 1982 and 1999, but not in 2008. In line with labor market imperfections as a key factor, separability of labor supply and demand decisions cannot be rejected in the last period, except in villages with very low nonagricultural labor demand.

JEL-codes: O13 Q15 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.3368/le.94.2.239
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/94/2/239
A subscription is required to access pdf files. Pay per article is available.

Related works:
Working Paper: Can labor market imperfections explain changes in the inverse farm size-productivity relationship? Longitudinal evidence from rural India (2016)
Working Paper: Can labor market imperfections explain changes in the inverse farm size?productivity relationship ? longitudinal evidence from rural India (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:94:y:2018:i:2:p:239-258

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().