Labor Market Performance and the Farm Size-Productivity Relationship in Rural India

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

No 212720, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: In this paper, we use a three-round farm-level panel from rural India to explore the existence and evolution of the inverse relationship between farm size and productivity that has been found in a large empirical literature. While present throughout, the inverse relationship weakened significantly over time; the estimated elasticity of productivity with respect to farm size increased from 0.73 to 0.95 from 1982 to 2007. Key drivers are better functioning labor markets and a narrowing of efficiency differences between own and hired labor, possibly due to greater use of machinery. Structural transformation and a transition towards larger farms thus did not hurt productivity and economic efficiency.

Keywords: Farm Management; International Development; Marketing (search for similar items in EconPapers)
Pages: 36
Date: 2015
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212720

DOI: 10.22004/ag.econ.212720

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