Household resources and factor market adjustment: A village economy investigation

Abstract

An agricultural household encounters a choice problem of entering casual labour market or the lease market, and the basis of this choice and whether this choice has any influence on the labour market formation needs to be explained. The authors make an attempt to identify whether the supply side could generate a constraint on the labour market formation, and in the process explain the existence of multiple forms of labour exchanges found in the villages of developing economies such as India.