Some aspects of employment in Indian agriculture

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Abstract

The purpose of this study is to examine the effects of structural differences (due to size of holding) on employment in Indian agriculture. Translog cost function is applied, and restrictions are tested using a likelihood ratio test. For small- and medium-size farms, joint estimation of a non-homothetic cost function with cost share equations is conducted, and Allen elasticities of substitution and price elasticities of demand for eight different inputs are derived. Inputs are classified as substitutes and complements using Slutsky-Hicks-Allen-Schultz definition. Each source of labor against hired labor is a substitute for small farms (0-5 hectares). Some policy analysis of rural employment and a fertilizer subsidy scheme is presented using price elasticities of demand for small and medium farms.
Original languageEnglish
Pages (from-to)691-704
Number of pages14
JournalWorld Development
Volume13
Issue number6
Publication statusPublished - 1 Jun 1985

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