Quarterly Journal of Economics Vol. 98 No. 3 1983
Labor-Tying in a Poor Agrarian Economy: A Theoretical and Empirical Analysis
Abstract
In this paper we show how tied labor, contrary to its common characterization as a feudal relic and as a symptom of economic stagnation, may actually be strengthened by capitalist agricultural development. We construct a simple two-period theoretical model of a two-tiered labor market to show how the proportional importance of voluntary labor-tying contracts may increase with yield-increasing improvements and with a tightening of the labor market. We then provide in support of these hypotheses some general historical as well as more detailed econometric evidence from a variety of cross-sectional data in rural India.
- DOI
- 10.2307/1886023
- Volume
- 98
- Issue
- 3
- Pages
- 501
- Sources
- openalex crossref