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Interlinked Land-Labor Contracts: Their Rationality In A Latin American Context

Author

Listed:
  • de Janvry, Alain
  • Sadoulet, Elisabeth

Abstract

The rationality for interlinkages between land and labor contracts, where rent is paid in labor services, is explored. These contracts emerge in a structural context of large farms and dualism when there is either a risk of default on rents, involuntary unemployment, or costly transactions costs on the labor market. The resulting size of land plots leased is analyzed with Chilean data. Reforming these contracts without transforming the causes of their existence has led to efficiency and welfare losses.

Suggested Citation

  • de Janvry, Alain & Sadoulet, Elisabeth, 1988. "Interlinked Land-Labor Contracts: Their Rationality In A Latin American Context," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270409, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea88:270409
    DOI: 10.22004/ag.econ.270409
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