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Causes and Consequences of Tenancy-Labor Interlinked Contract in the Agricultural Labor Market of West Bengal

  • Amit Kundu

In order to alleviate acute poverty and vulnerability in the absence of sufficient employment opportunities both in the farm and non-farm sectores, the landless agricultural laborers of West Bengal have a tie with the landlord in an interlinked contract, where the land market is linked up with the labor market. This type of interlinked contract is a new version of Employer’s risk hypothesis. A landless agricultural laborer will be inclined to bind himself with such an interlinked contract at the beginning of each year provided he has a large family labor force, and a regular savings habit. But he will not be inclined to such a contract if he gets sufficient employment in terms of man days either in the farm or non-farm sector in his locality. If he enters into such a contract, then the total size of land he has to take on lease from the landlord prior to the agricultural season is positively related to the total number of able-bodied family labor force. This paper also explains that the interlinked contract, besides abating poverty of the landless agricultural laborer, also reiterates the importance of land reforms for poverty eradication.

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Article provided by IUP Publications in its journal The IUP Journal of Agricultural Economics.

Volume (Year): VI (2009)
Issue (Month): 1 (January)
Pages: 70-82

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Handle: RePEc:icf:icfjag:v:06:y:2009:i:1:p:70-82
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