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Tenure Insecurity, Transaction Costs in the Land Lease Market and their Implications for Gendered Productivity Differentials

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  • Holden, Stein T.
  • Bezabih, Mintewab

Abstract

This study sets out to assess the link between land leasing behavior and productivity differentials between male and female-headed households. A double-moral hazard model allows us to show that landlord's tenure insecurity leads to sub-optimal level of effort on tenant's part, via its impact on the likelihood of contract renewal. The landlord's enforcement ability is also shown to increase the optimal level of effort. The empirical findings support the hypothesis that female heads of households have higher tenant turnover and lower enforcement ability. The results, however, show that contract renewal is not strongly linked to productivity.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25273.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25273

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Related research

Keywords: productivity; female headed households; contract length; enforcement ability; Land Economics/Use; D2; Q12; Q15; C21; C7;

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References

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  1. Holden, Stein & Shiferaw, Bekele & Pender, John L., 2001. "Market imperfections and land productivity in the Ethiopian Highlands:," EPTD discussion papers 76, International Food Policy Research Institute (IFPRI).
  2. Laffont, Jean-Jacques & Tirole, Jean, 1988. "The Dynamics of Incentive Contracts," Econometrica, Econometric Society, vol. 56(5), pages 1153-75, September.
  3. Bell, Clive & Zusman, Pinhas, 1976. "A Bargaining Theoretic Approach to Cropsharing Contracts," American Economic Review, American Economic Association, vol. 66(4), pages 578-88, September.
  4. Dhawan, Rajeev, 2001. "Firm size and productivity differential: theory and evidence from a panel of US firms," Journal of Economic Behavior & Organization, Elsevier, vol. 44(3), pages 269-293, March.
  5. Eswaran, Mukesh & Kotwal, Ashok, 1985. "A Theory of Contractual Structure in Agriculture," American Economic Review, American Economic Association, vol. 75(3), pages 352-67, June.
  6. Jacoby, Hanan G. & Mansuri, Ghazala, 2006. "Incomplete contracts and investment : a study of land tenancy in Pakistan," Policy Research Working Paper Series 3826, The World Bank.
  7. Bellemare, Marc F. & Barrett, Christopher B., 2003. "An Asset-Risk Model Of Reverse Tenancy," 2003 Annual meeting, July 27-30, Montreal, Canada 22132, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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Cited by:
  1. Meinzen-Dick, Ruth Suseela & van Koppen, Barbara & Behrman, Julia & Karelina, Zhenya & Akamandisa, Vincent & Hope, Lesley & Wielgosz, Ben, 2012. "Putting Gender on the Map: Methods for mapping gendered farm management systems in Sub-Saharan Africa," IFPRI discussion papers 1153, International Food Policy Research Institute (IFPRI).
  2. Klaus Deininger & Daniel Ayalew Ali & Tekie Alemu, 2008. "Assessing the Functioning of Land Rental Markets in Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 67-100, October.
  3. Peterman, Amber & Quisumbing, Agnes & Behrman, Julia & Nkonya, Ephraim, 2010. "Understanding gender differences in agricultural productivity in Uganda and Nigeria," IFPRI discussion papers 1003, International Food Policy Research Institute (IFPRI).
  4. Holden, Stein T. & Deininger, Klaus & Ghebru, Hosaena, 2007. "Impact of Land Certification on Land Rental Market Participation in Tigray Region, Northern Ethiopia," MPRA Paper 5211, University Library of Munich, Germany.
  5. Jin, Songqing & Deininger, Klaus W., 2007. "Land Rental Markets in the Process of Rural Structural Transformation: Productivity and Equity Impacts from China," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9932, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Meinzen-Dick, Ruth & Quisumbing, Agnes & Behrman, Julia & Biermayr-Jenzano, Patricia & Wilde, Vicki & Noordeloos, Marco & Ragasa, Catherine & Beintema, Nienke, 2010. "Engendering agricultural research," IFPRI discussion papers 973, International Food Policy Research Institute (IFPRI).
  7. Deininger, Klaus, 2010. "Towards sustainable systems of land administration: Recent evidence and challenges for Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 5(1), September.

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