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Untitled Land, Occupational Choice, and Agricultural Productivity

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  • Chaoran Chen

Abstract

The prevalence of untitled land in poor countries helps explain the agricultural productivity gap between rich and poor countries. Since untitled land cannot be rented or traded across farmers, it creates not only land market misallocation, but also distortions in occupational choice. I build a two-sector general equilibrium model to quantify the impact of untitled land. My results indicate that larger shares of untitled land lower agricultural productivity. If 80% of all land is untitled and distributed equally across farmers, agricultural productivity drops by 27.7%. The productivity drop is even larger when the distribution of untitled land is skewed.

Suggested Citation

  • Chaoran Chen, 2014. "Untitled Land, Occupational Choice, and Agricultural Productivity," Working Papers tecipa-513, University of Toronto, Department of Economics.
  • Handle: RePEc:tor:tecipa:tecipa-513
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    References listed on IDEAS

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    Cited by:

    1. Raul Santaeulalia-Llopis & Diego Restuccia, 2014. "Land Misallocation and Productivity," 2014 Meeting Papers 1314, Society for Economic Dynamics.
    2. Gottlieb, Charles & Grobovsek, Jan, 2015. "Communal land and agricultural productivity," LSE Research Online Documents on Economics 86311, London School of Economics and Political Science, LSE Library.
    3. Chaoran Chen & Diego Restuccia & Raul Santaeulalia-Llopis, 2017. "The Effects of Land Markets on Resource Allocation and Agricultural Productivity," Working Papers tecipa-592, University of Toronto, Department of Economics.
    4. Tasso Adamopoulos & Loren Brandt & Jessica Leight & Diego Restuccia, 2017. "Misallocation, Selection and Productivity: A Quantitative Analysis with Panel Data from China," Working Papers tecipa-593, University of Toronto, Department of Economics.
    5. Chaoran Chen, 2017. "Technology Adoption, Capital Deepening, and International Productivity Differences," Working Papers tecipa-584, University of Toronto, Department of Economics.

    More about this item

    Keywords

    Agricultural Productivity; Untitled Land; Misallocation; Occupational Choice.;

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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