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Differential Returns To Labor In Indian Agriculture

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  • Abler, David G.

Abstract

This article explores the speed of adjustment in Indian agricultural labor markets to changing economic circumstances. Agricultural wages in sixteen states during 1970-86 are analyzed. Results indicate that agricultural wages adjust quickly toward their long-run values, completing about one-fifth to one-fourth of the adjustment per year. Results also suggest strong linkages between the agricultural and nonagricultural labor markets. Interstate agricultural productivity differences have risen substantially in the last twenty-five years, and many feel this has led to a disintegration of the agricultural labor market. The findings suggest an indirect integration may be occurring through migration to nonagriculture.

Suggested Citation

  • Abler, David G., 1991. "Differential Returns To Labor In Indian Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), pages 1-9, April.
    • Handle: RePEc:ags:nejare:28820
    DOI: 10.22004/ag.econ.28820
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    References listed on IDEAS

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    1. Rosenzweig, Mark R, 1978. "Rural Wages, Labor Supply, and Land Reform: A Theoretical and Empirical Analysis," American Economic Review, American Economic Association, vol. 68(5), pages 847-861, December.
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    Labor and Human Capital;

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