Absentee Landlords and Land Tenancy
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Washington, DC: World Bank
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Internal migration and structural
transformation are strongly interrelated. This paper uses
Indian data spanning 2001–13 to examine a little-known
aspect of this relationship: how migration affects
agricultural land rental contracts. Building on anecdotal
evidence and theory, the paper hypothesizes that as
landlords migrate away, their choice of contract for
tenant-cultivators changes from sharecropping to fixed rent.
Using a shift-share instrument that exploits information on
bilateral migration flows between districts, the paper shows
that migration increased fixed rent tenancy and contract
formalization. Given the continued importance of
agricultural land rental markets, these findings have
significant implications for rural efficiency and equity in
developing countries.
Palabras clave
MIGRATION, LAND TENANCY, SHARECROPPING, LAND RENT, INDIA, SUSTAINABLE CITIES AND COMMUNITIES, SDG 11