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Labour Contracts in Rural India: Theories and Evidence

In: The Balance between Industry and Agriculture in Economic Development

Author

Listed:
  • Jean P. Drèze

    (London School of Economics and Political Science)

  • Anindita Mukherjee

    (New Delhi)

Abstract

The last few decades have seen a proliferation of theories aiming at a better understanding of rural labour markets in developing countries: from early ‘subsistence theories’ where the determination of wages was regarded as largely ‘exogenous’ to labour market conditions, through the revival of the competitive paradigm, to the more recent and sophisticated models focusing on incomplete information, uncertainty or bargaining situations. Over the same period a large number of microstudies undertaken in Indian villages by social scientists of all disciplines have provided valuable empirical evidence on how rural labour markets actually function in that country. Unfortunately, much of this material has remained insufficiently known to theorists, and its potential in helping to form a judgement about the usefulness of alternative theories is still largely unexploited.

Suggested Citation

  • Jean P. Drèze & Anindita Mukherjee, 1989. "Labour Contracts in Rural India: Theories and Evidence," International Economic Association Series, in: Sukhamoy Chakravarty (ed.), The Balance between Industry and Agriculture in Economic Development, chapter 10, pages 233-265, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-10274-7_10
    DOI: 10.1007/978-1-349-10274-7_10
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    Citations

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    Cited by:

    1. Dillon, Brian & Brummund, Peter & Mwabu, Germano, 2019. "Asymmetric non-separation and rural labor markets," Journal of Development Economics, Elsevier, vol. 139(C), pages 78-96.
    2. Sunil Kanwar, 2000. "Seasonality and Wage-responsiveness in nonclearing labour markets: Evidence from Indian agriculture," Working papers 80, Centre for Development Economics, Delhi School of Economics.
    3. Fields,Gary S., 2005. "A guide to multisector labor market models," Social Protection and Labor Policy and Technical Notes 32547, The World Bank.
    4. Jayaraman, Rajshri & Lanjouw, Peter, 1999. "The Evolution of Poverty and Inequality in Indian Villages," The World Bank Research Observer, World Bank, vol. 14(1), pages 1-30, February.
    5. Emily Breza & Supreet Kaur & Nandita Krishnaswamy, 2019. "Social Norms as a Determinant of Aggregate Labor Supply," NBER Working Papers 25880, National Bureau of Economic Research, Inc.
    6. Beyza Ural Marchand, 2019. "Inequality and Trade Policy: The Pro‐Poor Bias of Contemporary Trade Restrictions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 123-152, November.
    7. Dasgupta, Partha, 1997. "Nutritional status, the capacity for work, and poverty traps," Journal of Econometrics, Elsevier, vol. 77(1), pages 5-37, March.
    8. Kanwar, Sunil, 1998. "Wage responsiveness of labour supply and demand in nonclearing rural markets: the case of Indian agriculture," Economics Letters, Elsevier, vol. 61(3), pages 395-402, December.
    9. Dessing, Maryke, 2004. "Implications for minimum-wage policies of an S-shaped labor-supply curve," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 543-568, April.

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