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The demand for labour in risky agriculture

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  • Sunil Kanwar

Abstract

This paper studies the demand for hired casual labour under production risk for a sample of Indian cultivators. A simple static household model under production risk is constructed to yield the demand for hired labour function. A detailed discussion of the various technological and non-technological regressors is then presented. Empirical results reveal that the risk variables do not have a significant influence on hiring-in behaviour. This result is important since the theoretical literature shows that a marginal increase in risk would lead to a decline in the demand for labour. Further, caste factors do not appear to influence hiring-in, contrary to evidence for eastern India. Land-augmenting technological factors appear to be the most important in explaining rightward shifts in the demand curve over time.

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  • Sunil Kanwar, 1999. "The demand for labour in risky agriculture," Oxford Development Studies, Taylor & Francis Journals, vol. 27(1), pages 129-144.
    • Handle: RePEc:taf:oxdevs:v:27:y:1999:i:1:p:129-144
    DOI: 10.1080/13600819908424169
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    Cited by:

    1. Hurley, Terrance M., 2010. "A review of agricultural production risk in the developing world," Working Papers 188476, HarvestChoice.
    2. Dupraz, Pierre & Latruffe, Laure, 2015. "Trends in family labour, hired labour and contract work on French field crop farms: The role of the Common Agricultural Policy," Food Policy, Elsevier, vol. 51(C), pages 104-118.

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