In agricultural labor exchange, farmers temporarily pool their labor into teams and complete a task on each team member’s plot in succession. Labor time is exchanged between team members under strict reciprocity and without pay. The use of agricultural labor exchange in developing countries is widespread, but has received little attention from economists. This dissertation investigates the motivation for the formation of labor exchange teams by considering the individual farmer’s decision to participate. The analysis focuses on the two most prominent motivations for labor exchange: credit and labor market imperfections and the technological benefits of teamwork. A theoretical model of demand for labor exchange…
Author: Gilligan, Daniel Orth
Source: University of Maryland
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