Scandinavian Working Papers in Economics
CLTS Working Papers,
Norwegian University of Life Sciences, Centre for Land Tenure Studies
No 6/11: Caste, Land and Labor Market Imperfections, and Land Productivity in Rural Nepal
Jeetendra P. Aryal and Stein T. Holden ()
Additional contact information
Jeetendra P. Aryal: Department of Economics and Resource Management, Postal: P.O. Box 5003, N-1432 Ås, Norway
Stein T. Holden: Norwegian University of Life Sciences (UMB), Postal: P.O. Box 5003, N-1432 Ås, Norway
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
34 pages, First version: June 6, 2011. Revised: October 10, 2019.
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