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Revisiting the relationship between farm mechanization and labour requirement in India

Author

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  • Pallavi Rajkhowa

    (University of Bonn)

  • Zaneta Kubik

    (University of Bonn)

Abstract

In many developing and emerging economies, better employment opportunities in the non-farm sector have increased rural wages due to labour shortages during the peak agricultural season. Increasing wages often cause a substitution of labour for mechanical power, but extensive use of labour-saving technologies may cause labour displacement and have serious equity concerns. Using the household and individual fixed effect estimation approach, this paper analyses the relationship between different types of farm machines and labour requirements in India. The results suggest that a unit increase in the level of farm mechanization increases the demand for hired labour by 12%. Moreover, we find that the level of farm mechanization has a positive effect on women’s participation in farm work, while it decreases the probability of children participating in agriculture-related work. Disaggregated analysis based on types of farm machinery suggests that water-lifting equipment, draft power and tractors increase the probability of male household members working on their farms, while all types of farm machines, except tractors, have a positive effect on female farm labour participation. We also find that the effect of farm mechanization on the demand for hired labour decreases as the size of the farm increases.

Suggested Citation

  • Pallavi Rajkhowa & Zaneta Kubik, 2021. "Revisiting the relationship between farm mechanization and labour requirement in India," Indian Economic Review, Springer, vol. 56(2), pages 487-513, December.
    • Handle: RePEc:spr:inecre:v:56:y:2021:i:2:d:10.1007_s41775-021-00120-x
    DOI: 10.1007/s41775-021-00120-x
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    References listed on IDEAS

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    Cited by:

    1. Shi, Hongxu & Xu, Hao & Gao, Wei & Zhang, Jinhao & Chang, Ming, 2022. "The impact of energy poverty on agricultural productivity: The case of China," Energy Policy, Elsevier, vol. 167(C).
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    3. Daum, Thomas, 2022. "Agricultural mechanization and sustainable agrifood system transformation in the Global South," ESA Working Papers 330795, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).

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    More about this item

    Keywords

    Farm mechanization; Agriculture; India;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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