S. Kanwar, Wage responsiveness of labour supply and demand in nonclearing rural markets: the case of Indian agriculture, ECON LETT, 61(3), 1998, pp. 395-402
Studies considering the supply or demand for casual labour in isolation may
be inappropriate in the context of Asian agriculture, as also simultaneous
equations models that assume the labour market to clear. For it is an acce
pted stylized fact that rural labour markets do not clear. Formulating poss
ibly the first disequilibrium model in the context of Indian agriculture we
present more reliable estimates of the wage responsiveness of the supply a
nd demand for labour from cultivator and landless households. These appear
to contradict received evidence. (C) 1998 Elsevier Science S.A. All rights
reserved.