WAGE-HOMESTEAD TENANCIES - TECHNOLOGICAL DUALISM AND TENANT HOUSEHOLDSIZE

A widespread but little-studied tenancy in the developing world entail s the exchange of labor for access to a homestead and a wage. This pap er models two distinguishing features of this tenancy: technological d ualism between the landlord's and tenants' plot, and landlord preferen ces over tenant household size. When wages are lime denominated, moral hazard may provide incentive for landlords to resist innovation on th e homestead Landlords are shown to prefer larger tenant household unde r a time wage than under piece-rate. I argue that landlord preferences over tenant household size may have important effects that are ignore d in the literature.