Wages, prices and agriculture : how can Indian agriculture cope with rising wages?

dc.contributor.authorBinswanger-Mkhize, Hans Peter
dc.contributor.authorSingh, Sudhir K.
dc.date.accessioned2017-10-31T08:07:14Z
dc.date.issued2018-06
dc.description.abstractRapid economic growth in India has resulted in rapidly rising rural wages. Using the framework of variable profit functions and household level data, we study econometrically the wage impacts on crop agriculture. Rising wages are associated with decreasing crop output, other things being equal. Crop prices would need to increase by 80% in the short run to offset the effect of an agricultural wage increase, or by 140% in the short run to offset rural non-farm wage increases as well. However, because non-land farm assets respond positively to the non-farm wage, in the medium term this increase is reduced to 74%. During the period of 1999/00-2007/08, growth in non-land farm assets, the labour force, education and technology has easily compensated for the wage increase, and probably also for the accelerating wage growth. Focusing on growing these shifter variables is a much better policy option than raising prices that would come at the expense of consumers or taxpayers.en_ZA
dc.description.departmentAgricultural Economics, Extension and Rural Developmenten_ZA
dc.description.embargo2020-06-01
dc.description.librarianhj2017en_ZA
dc.description.urihttp://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1477-9552en_ZA
dc.identifier.citationBinswanger, H.P. & Singh, S.K. 2018, 'Wages, prices and agriculture : how can Indian agriculture cope with rising wages?', Journal of Agricultural Economics, vol. 69, no. 2, pp. 281-305.en_ZA
dc.identifier.issn0021-857X (print)
dc.identifier.issn1477-9552 (online)
dc.identifier.other10.1111/1477-9552.12234
dc.identifier.urihttp://hdl.handle.net/2263/62980
dc.language.isoenen_ZA
dc.publisherWileyen_ZA
dc.rights© 2017 The Agricultural Economics Society. This is the pre-peer reviewed version of the following article : 'Wages, prices and agriculture : how can Indian agriculture cope with rising wages?', Journal of Agricultural Economics, vol. 69, no. 2, pp. 281-305, 2018, doi : 10.1111/1477-9552.12234. The definite version is available at : http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1477-9552.en_ZA
dc.subjectCrop supplyen_ZA
dc.subjectIndiaen_ZA
dc.subjectLabour demanden_ZA
dc.subjectPricesen_ZA
dc.subjectWagesen_ZA
dc.titleWages, prices and agriculture : how can Indian agriculture cope with rising wages?en_ZA
dc.typePostprint Articleen_ZA

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