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http://hdl.handle.net/10419/59127
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| Title: | | Is there surplus labor in rural India?  |
| Authors: | | Foster, Andrew D. Rosenzweig, Mark R. |
| Issue Date: | | 2010 |
| Series/Report no.: | | Center Discussion Paper, Economic Growth Center 991 |
| Abstract: | | We show empirically using panel data at the plot and farm level and based on a model incorporating supervision costs, risk, credit-market imperfections and scale-economies associated with mechanization that small-scale farming is inefficient in India. Larger farms are more profitable per acre, more mechanized, less constrained in input use after bad shocks, and employ less per-acre labor than small farms. Based on our structural estimates of the effects of farm size on labor use and the distribution of Indian landholdings, we estimate that over 20% of the Indian agricultural labor force is surplus if minimum farm scale is 20 acres. |
| Subjects: | | agriculture India scale profits labor tractors |
| JEL: | | O13 O16 O53 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Center Discussion Papers, Economic Growth Center (EGC), Yale University
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