EconPapers    
Economics at your fingertips  
 

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

International Food Policy Research Institute Ifpri

Working Papers from eSocialSciences

Abstract: To understand whether and how inverse relationship between farm size and productivity changes when labor market performance improves, we use large national farm panel from India covering a quarter-century (1982, 1999, 2008) to show that the inverse relationship weakened significantly over time, despite an increase in the dispersion of farm sizes. 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 the 1982–1999 period, but not during the 1999–2008 period.In line with labor market imperfections as a key factor, separability of labor supply and demand decisions cannot be rejected in the second period,except in villages with very low non agricultural labor demand.

Keywords: farm size; farm productivity; labour market; India; national farm; farm size; efficiency; labour demand; hired labour; labour supply; labour demand; non agricultural labour; market imperfection (search for similar items in EconPapers)
Date: 2016-06
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... AId=11007&fref=repec

Related works:
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:ess:wpaper:id:11007

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().

 
Page updated 2019-04-22
Handle: RePEc:ess:wpaper:id:11007