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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
  • St?phanie Brisson

Abstract

This article examines the substitutability, efficiency, and evolution of an important nonmarket institution in agrarian societies ? labor sharing. From analyses of field-level data on forest clearing through time among shifting cultivators in the Peruvian Amazon, we find: (1) no productivity difference and unitary elasticities of substitution among family, hired, and cooperative labor, i.e., perfect substitutes; (2) the combination of labor market and sharing makes total labor use unconstrained by household and network endowments, i.e., efficient labor allocation; and (3) as labor composition is constrained by network endowments and liquidity, credit policies alter not only labor composition, but also network formation.

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  • Yoshito Takasaki & Oliver T. Coomes & Christian Abizaid & St?phanie Brisson, 2011. "An efficient nonmarket institution under imperfect markets: Labor sharing for tropical forest clearing," Tsukuba Economics Working Papers 2011-007, Faculty of Humanities and Social Sciences, University of Tsukuba, revised Jan 2012.
  • Handle: RePEc:tsu:tewpjp:2011-007
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