Scandinavian Working Papers in Economics
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Centre for Land Tenure Studies, Norwegian University of Life Sciences CLTS Working Papers, Centre for Land Tenure Studies, Norwegian University of Life Sciences

No 6/11:
Caste, Land and Labor Market Imperfections, and Land Productivity in Rural Nepal

Jeetendra P. Aryal and Stein T. Holden ()

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

Keywords: land productivity; high-caste landlords; low-caste tenants; transaction costs; sharecropping; market imperfections; Nepal; (follow links to similar papers)

JEL-Codes: Q12; Q15; (follow links to similar papers)

34 pages, June 6, 2011

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