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An Efficient Nonmarket Institution under Imperfect Markets: Labor Sharing for Tropical Forest Clearing

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  • Yoshito Takasaki
  • Oliver T. Coomes
  • Christian Abizaid
  • Stéphanie Brisson

Abstract

This article examines the substitutability, productivity, efficiency, and evolution of an important agrarian nonmarket institution-labor sharing. Analysis of field-level data on forest clearing through time among Amazonian shifting cultivators reveals that (a) family, hired, and cooperative labor are perfect substitutes, and hired and cooperative labor are equally productive, and both are more productive than family labor; (b) the combination of labor market and labor sharing makes productivity-adjusted total labor use unconstrained by household and network endowments (i.e., efficient labor allocation); and (c) as labor composition is constrained by network endowments and liquidity, credit policies alter both labor composition and labor network formation.

Suggested Citation

  • Yoshito Takasaki & Oliver T. Coomes & Christian Abizaid & Stéphanie Brisson, 2014. "An Efficient Nonmarket Institution under Imperfect Markets: Labor Sharing for Tropical Forest Clearing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(3), pages 711-732.
    • Handle: RePEc:oup:ajagec:v:96:y:2014:i:3:p:711-732.
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    File URL: http://hdl.handle.net/10.1093/ajae/aat102
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    Cited by:

    1. Arciniegas, Christian & Dumas, Christelle & Fahn, Matthias, 2025. "Informal Labor Exchange Teams and Participation in the Labor Market: Evidence from Rural Tanzania," IZA Discussion Papers 17852, Institute of Labor Economics (IZA).
    2. Zhang, Lei & Zhu, Xueqin & Heerink, Nico & Shi, Xiaoping, 2014. "Does output market development affect irrigation water institutions? Insights from a case study in northern China," Agricultural Water Management, Elsevier, vol. 131(C), pages 70-78.
    3. Jaimovich, Dany, 2015. "Missing Links, Missing Markets: Evidence of the Transformation Process in the Economic Networks of Gambian Villages," World Development, Elsevier, vol. 66(C), pages 645-664.
    4. Zhang, Cheng & Nie, Kunxi & Zhu, Yueji, 2024. "Participation in land rental and labor markets and agricultural economic performance of banana farmers in China," Land Use Policy, Elsevier, vol. 146(C).
    5. Coomes, Oliver T. & Cheng, Yuanyu & Takasaki, Yoshito & Abizaid, Christian, 2021. "What drives clearing of old-growth forest over secondary forests in tropical shifting cultivation systems? Evidence from the Peruvian Amazon," Ecological Economics, Elsevier, vol. 189(C).

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