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Family Labourforce as a Determinant of Tenancy-Labour Interlinked Contract


  • Kundu, AMIT


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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  • Kundu, AMIT, 2007. "Family Labourforce as a Determinant of Tenancy-Labour Interlinked Contract," MPRA Paper 7615, University Library of Munich, Germany, revised 21 Dec 2007.
  • Handle: RePEc:pra:mprapa:7615

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    References listed on IDEAS

    1. Bell, Clive, 1988. "Credit markets and interlinked transactions," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 16, pages 763-830 Elsevier.
    2. Basu, Kaushik, 1983. "The Emergence of Isolation and Interlinkage in Rural Markets," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 262-280, July.
    3. 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 144383, Australian Agricultural and Resource Economics Society.
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    More about this item


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

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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