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Caste, Land and Labor Market Imperfections, and Land Productivity in Rural Nepal

Author

Listed:
  • Aryal, Jeetendra P.

    (Department of Economics and Resource Management)

  • Holden, Stein T.

    (Norwegian University of Life Sciences (UMB))

Abstract

This paper provides new evidence on the caste-related land productivity differential and its explanations in rural Nepal using household plot panel data. Low-caste households are found to have significantly higher land productivity on their owner-operated plots as compared to high-caste households. A comparison between the rented in land of low-caste and the owneroperated land of high-caste households showed that the former has significantly higher land productivity. No significant Marshallian inefficiency was found in the case of low-caste tenant households. Land productivity differences are explained by transaction costs in the labor market and caste discrimination rather than the disincentive effect of sharecropping

Suggested Citation

  • Aryal, Jeetendra P. & Holden, Stein T., 2011. "Caste, Land and Labor Market Imperfections, and Land Productivity in Rural Nepal," CLTS Working Papers 6/11, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    • Handle: RePEc:hhs:nlsclt:2011_006
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    References listed on IDEAS

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    1. Aryal, Jeetendra P. & Holden, Stein T., 2011. "Caste Discrimination, Land Reforms and Land Market Performance in Nepal," CLTS Working Papers 1/11, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.

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    More about this item

    Keywords

    land productivity; high-caste landlords; low-caste tenants; transaction costs; sharecropping; market imperfections; Nepal;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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