Daily wages and piece rates in agrarian economies
AbstractThe paper presents an analysis of the coexistence of daily-wage and piece-rate contracts in agrarian economies. We show that, when individual effort is taken into account, daily-wage labourers typically form a convex set in the space of working ability. The most able and the least able labourers work on piece rates, as they can thus choose their own level of effort. We also prove that, on a monopsonistic labour market, the use of both contracts in equilibrium results from the profitability of market segmentation. Imperfect substitutability between workers under different contracts and the downwards rigidity of daily wages can also explain the coexistence of the two types of contracts in more general settings, e.g. perfect competition
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1998058.
Date of creation: 01 Oct 1998
Date of revision:
Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
India; labour contracts; agricultural labour;
Other versions of this item:
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Petersen, Trond, 1991. "Reward Systems and the Distribution of Wages," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 130-58, Special I.
- Bliss, C. J. & Stern, N. H., 1982. "Palanpur: The Economy of an Indian Village," OUP Catalogue, Oxford University Press, number 9780198284192.
- Anindita Mukherjee, 1994. "The Labour Markets in Indian Villages," Boston University - Institute for Economic Development 34, Boston University, Institute for Economic Development.
- Reddy, C. R, 1985. "Rural labour market in varhad: a case study of agricultural labourers in rain-fed agriculture in India," ILO Working Papers 241836, International Labour Organization.
- Matutes, Carmen & Regibeau, Pierre & Rockett, Katharine, 1994. "Compensation Schemes and Labor Market Competition: Piece Rate versus Wage Rate," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 3(2), pages 325-53, Summer.
- Bardhan, Pranab & Rudra, Ashok, 1981. "Terms and Conditions of Labour Contracts in Agriculture: Results of a Survey in West Bengal, 1979," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(1), pages 89-111, February.
- Jellal, Mohamed & Zenou, Yves, 2005.
"Ethnic Diversity, Market Structure and Risk Sharing in Developing Countries,"
CEPR Discussion Papers
5366, C.E.P.R. Discussion Papers.
- Jellal, Mohamed & Zenou, Yves, 2006. "Ethnic diversity market structure and risk sharing in developing countries," MPRA Paper 38435, University Library of Munich, Germany.
- Makino, Momoe, 2012. "What motivates female operators to enter the garment industry in Pakistan in the post-MFA period?," IDE Discussion Papers 374, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Jayaraman, Rajshri & Lanjouw, Peter, 1999.
"The Evolution of Poverty and Inequality in Indian Villages,"
World Bank Research Observer,
World Bank Group, vol. 14(1), pages 1-30, February.
- Jayraman, Raji & Lanjouw, Peter, 1998. "The evolution of poverty and inequality in Indian villages," Policy Research Working Paper Series 1870, The World Bank.
- Imai, Katsushi, 2007.
"Targeting versus universalism: An evaluation of indirect effects of the Employment Guarantee Scheme in India,"
Journal of Policy Modeling,
Elsevier, vol. 29(1), pages 99-113.
- Katsushi Imai, 2004. "Targeting versus Universalism: An Evaluation of Indirect Effects of the Employment Guarantee Scheme in India," Royal Holloway, University of London: Discussion Papers in Economics 04/07, Department of Economics, Royal Holloway University of London, revised Jun 2004.
- Raghav Gaiha, 2004. "Is There a Case for the Employment Guarantee Scheme in India? Some Recent Evidence," ASARC Working Papers 2004-09, The Australian National University, Australia South Asia Research Centre.
- Hart, Robert A., 2000.
"Hours and Wages in the Depression: British Engineering, 1926-1938,"
IZA Discussion Papers
132, Institute for the Study of Labor (IZA).
- Hart, Robert A, 2001. "Hours and Wages in the Depression: British Engineering, 1926-1938," Explorations in Economic History, Elsevier, vol. 38(4), pages 478-502, October.
- Jha, Raghbendra & Gaiha, Raghav & Pandey, Manoj K., 2013. "Body Mass Index, participation, duration of work and earnings under the National Rural Employment Guarantee Scheme: Evidence from Rajasthan," Journal of Asian Economics, Elsevier, vol. 26(C), pages 14-30.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.