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The effects of agrarian contracts of a governmental intervention into bonded labor in the western terai of Nepal

Author

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  • Magnus Hatlebakk

Abstract

We study an effective intervention into a specific form of bonded labor. The intervention led to a shift in agrarian contracts, from bonded labor to sharecropping. By comparing the pre- and post-liberation contracts we evaluate theoretical models of agrarian contracts. We suggest three mechanisms that jointly explain why landlords offered bonded labor contracts pre-liberation. One mechanism we apply to define bonded labor in contrast to tied labor. The mechanism, where the outside option as casual labor is endogenously determined by the choice of long-term contract, implies a trade-off for the landlord between efficiency and redistribution of surplus.

Suggested Citation

  • Magnus Hatlebakk, 2006. "The effects of agrarian contracts of a governmental intervention into bonded labor in the western terai of Nepal," CMI Working Papers WP 2006: 6, CMI (Chr. Michelsen Institute), Bergen, Norway.
    • Handle: RePEc:chm:wpaper:wp2006-6
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    Cited by:

    1. Koolwal, Gayatri B., 2007. "Son Preference and Child Labor in Nepal: The Household Impact of Sending Girls to Work," World Development, Elsevier, vol. 35(5), pages 881-903, May.

    More about this item

    Keywords

    Tied labor Agrarian institutions Nepal;

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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