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The Effects on Agrarian Contracts of a Governmental Intervention into Bonded Labor in the Western Terai of Nepal

Hatlebakk, Magnus
Working paper
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Working paper WP 2006-6.pdf (414.9Kb)
URI
http://hdl.handle.net/11250/2435957
Date
2006
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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.
Publisher
Chr. Michelsen Institute
Series
CMI Working paper
WP 2006: 6

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