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Family Labourforce as a Determinant of Tenancy-Labour Interlinked Contract

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  • Kundu, AMIT

Abstract

In this interlinked contract land market is tied with labour market. The landlord leases-out small size of land to the landless agricultural labour households under fixed rent system prior to agricultural peak season on the basis of their commitment to work under his field through out that season. A household can bind itself in such a contract if and only if it has certain number of family labour force. But which households can ultimately tie them in such a contract is totally decided by the market force in that village economy where the family labour force is the determining factor. The paper also shows that this interlinked contract may generate involuntary unemployment in the agricultural labour market and under certain conditions the tied households can not only cross the reservation level of income but also can cross the poverty line.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7615.

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Date of creation: 26 Oct 2007
Date of revision: 21 Dec 2007
Handle: RePEc:pra:mprapa:7615

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Keywords: Family Farming; Agricultural Labour Market; Interlinked Contract; Poverty;

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  1. Battese, George E. & Coelli, Tim J. & Colby, T.C., 1989. "Estimation of Frontier Production Functions and the Efficiencies of Indian Farms Using Panel Data from ICRISAT's Village Level Studies," 1989 Conference (33rd), February 7-9, 1989, Christchurch, New Zealand, Australian Agricultural and Resource Economics Society 144383, Australian Agricultural and Resource Economics Society.
  2. Bell, Clive, 1988. "Credit markets and interlinked transactions," Handbook of Development Economics, Elsevier, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 16, pages 763-830 Elsevier.
  3. Basu, Kaushik, 1983. "The Emergence of Isolation and Interlinkage in Rural Markets," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 262-80, July.
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