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The agricultural wage gap within rural villages

Author

Listed:
  • Baysan, Ceren
  • Dar, Manzoor H.
  • Emerick, Kyle
  • Li, Zhimin
  • Sadoulet, Elisabeth

Abstract

We use unique data on daily labor-market outcomes for Indian casual workers to study labor reallocation between agricultural and non-agricultural activities within rural areas. Controlling for both individual time-invariant attributes and time-varying shocks, we find that workers who switch sectors across years or even within a week can obtain 23% higher wages by taking non-agricultural jobs. We then estimate a discrete choice model of daily labor allocation that decomposes preferences for jobs into two types of disamenities: (i) those associated with job characteristics and (ii) those associated with location. We find that the first type of disamenity is 23% of wages for men and 38% for women, and the second type is 36% of wages for men and 31% for women.

Suggested Citation

  • Baysan, Ceren & Dar, Manzoor H. & Emerick, Kyle & Li, Zhimin & Sadoulet, Elisabeth, 2024. "The agricultural wage gap within rural villages," Journal of Development Economics, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:deveco:v:168:y:2024:i:c:s0304387824000191
    DOI: 10.1016/j.jdeveco.2024.103270
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