In this article we examine the terms of sharecropping contracts using data
from rural India. We examine the effect of - (1) the sharing of input costs
between landlord and tenant; (2) the tenant's capacity to borrow: and (3)
the existence of outside employment opportunities for the tenant - on the s
hare parameter. We regress the share paid by the household on a set of cult
ivating household and village level characteristics and find that cost shar
ing and the existence of outside employment opportunities significantly aff
ect the share parameter.