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Library Caste, land and labour market imperfections, and land productivity in rural Nepal

Caste, land and labour market imperfections, and land productivity in rural Nepal

Caste, land and labour market imperfections, and land productivity in rural Nepal

Resource information

Date of publication
December 2011
Resource Language
ISBN / Resource ID
CLTS:11250/2478619

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.

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