Can labor market imperfections explain changes in the inverse farm size?productivity relationship ? longitudinal evidence from rural India

Klaus Deininger, Songqing Jin, Yanyan Liu (y.liu@cgiar.org) and Sudhir Singh

No 7783, Policy Research Working Paper Series from The World Bank

Abstract: A large national farm panel from India covering a quarter century (1982, 1999, and 2008) is used to show that the inverse farm size-yield relationship weakened significantly over time, despite an increase in the dispersion of farm sizes. Key reasons are substitution of capital for labor in response to nonagricultural labor demand. Family labor was more efficient than hired labor in 1982-99, but not in 1999?2008. 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 nonagricultural labor demand.

Keywords: Community Based Rural Development; Rural Labor Markets; Regional Rural Development; Rural Development Strategy&Policy; Labor Markets; Rural Communities; Rural Development Knowledge&Information Systems (search for similar items in EconPapers)
Date: 2016-08-04
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Can Labor-Market Imperfections Explain Changes in the Inverse Farm Size–Productivity Relationship? Longitudinal Evidence from Rural India (2018)
Working Paper: Can labor market imperfections explain changes in the inverse farm size-productivity relationship? Longitudinal evidence from rural India (2016)
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