Publication:
Do Land Market Restrictions Hinder Structural Change in a Rural Economy?: Evidence from Sri Lanka

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dc.contributor.authorEmran, M. Shahe
dc.contributor.authorShilpi, Forhad J.
dc.contributor.authorShilpi, Forhad
dc.date.accessioned2016-01-12T21:53:42Z
dc.date.available2016-01-12T21:53:42Z
dc.date.issued2015-12
dc.description.abstractThis paper analyzes the effects of land market restrictions on structural change from agriculture to non-farm in a rural economy. This paper develops a theoretical model that focuses on higher migration costs due to restrictions on alienability, and identifies the possibility of a reverse structural change where the share of nonagricultural employment declines. The reverse structural change can occur under plausible conditions: if demand for the non-agricultural good is income-inelastic (assuming the non-farm good is non-tradable), or non-agriculture is less labor intensive relative to agriculture (assuming the non-farm good is tradable). For identification, this paper exploits a natural experiment in Sri Lanka where historical malaria played a unique role in land policy. The empirical evidence indicates significant adverse effects of land restrictions on manufacturing and services employment, rural wages, and per capita household consumption. The evidence on the disaggregated occupational choices suggests that land restrictions increase wage employment in agriculture, but reduce it in manufacturing and services, with no perceptible effects on self-employment in non-agriculture. The results are consistent with the migration costs model, but contradict two widely discussed alternative mechanisms: collateral effect and property rights insecurity. This paper also provides direct evidence in favor of the migration costs mechanism.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/12/25713612/land-market-restrictions-hinder-structural-change-rural-economy-evidence-sri-lanka
dc.identifier.urihttps://hdl.handle.net/10986/23625
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7525
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectSELF EMPLOYED
dc.subjectEMPLOYMENT
dc.subjectSOCIAL COSTS
dc.subjectRIGHTS
dc.subjectMOTIVATION
dc.subjectECONOMIC GROWTH
dc.subjectPRODUCTION
dc.subjectUTILITY FUNCTIONS
dc.subjectCURRENT LABOR FORCE
dc.subjectSTRUCTURAL CHANGE
dc.subjectINCOME
dc.subjectAGRICULTURAL PRODUCTION
dc.subjectLABOR ALLOCATION
dc.subjectMARGINAL COST
dc.subjectINTEREST RATE
dc.subjectPROPERTY RIGHTS
dc.subjectAGRICULTURAL DEVELOPMENT
dc.subjectELASTICITY OF DEMAND
dc.subjectINFORMATION
dc.subjectLABOR FORCE
dc.subjectPRODUCTION INCREASES
dc.subjectELASTICITY
dc.subjectPOLITICAL ECONOMY
dc.subjectENGEL CURVE
dc.subjectEFFECTS
dc.subjectINCENTIVES
dc.subjectHEALTH
dc.subjectEQUILIBRIUM
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectVARIABLES
dc.subjectRURAL LABOR
dc.subjectMODELS
dc.subjectPRIVATE PROPERTY
dc.subjectLABOR FORCE PARTICIPATION
dc.subjectMOBILITY OF LABOR
dc.subjectAGRICULTURAL OUTPUT
dc.subjectFERTILIZERS
dc.subjectPRODUCTION PROCESS
dc.subjectKNOWLEDGE
dc.subjectEMPIRICAL ANALYSIS
dc.subjectDEVELOPMENT
dc.subjectINELASTIC DEMAND
dc.subjectPRESENT VALUE
dc.subjectCHOICE
dc.subjectLABOR MARKET
dc.subjectCOSTS
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectPOPULATION GROWTH
dc.subjectRENT
dc.subjectDATA QUALITY
dc.subjectPRODUCTS
dc.subjectPRODUCTIVITY
dc.subjectECONOMETRICS
dc.subjectLABOR PRODUCTIVITY
dc.subjectOPTIONS
dc.subjectECONOMETRIC MODELS
dc.subjectCRITERIA
dc.subjectMARKETING
dc.subjectMARKETS
dc.subjectSMALLHOLDER AGRICULTURE
dc.subjectORGANIZATIONS
dc.subjectRESEARCH
dc.subjectHISTORY
dc.subjectLABOR
dc.subjectFARMERS
dc.subjectCONSUMER CHOICE
dc.subjectUTILITY
dc.subjectLAND DEVELOPMENT
dc.subjectMORTALITY
dc.subjectCROPS
dc.subjectFOOD PRODUCTION
dc.subjectFEMALE LABOR
dc.subjectLAND USE
dc.subjectUNEMPLOYMENT
dc.subjectPRODUCTIVITY GROWTH
dc.subjectCONSUMPTION
dc.subjectGENERAL EQUILIBRIUM
dc.subjectHUMAN CAPITAL
dc.subjectCAPITAL
dc.subjectWAGES
dc.subjectPOLICIES
dc.subjectVALUES
dc.subjectDUAL ECONOMY
dc.subjectLABOR DEMAND
dc.subjectFAMILY
dc.subjectVALUE
dc.subjectGENDER
dc.subjectPRODUCTION FUNCTIONS
dc.subjectCREDIT
dc.subjectDIVISION OF LABOR
dc.subjectDEMAND
dc.subjectUTILITY FUNCTION
dc.subjectECONOMY
dc.subjectAGRICULTURE
dc.subjectPROPERTY
dc.subjectPRIVATE SECTOR
dc.subjectMEASUREMENT
dc.subjectTRANSACTION COSTS
dc.subjectENVIRONMENT
dc.subjectLABOR MOBILITY
dc.subjectCONCEPTUAL FRAMEWORK
dc.subjectECONOMICS
dc.subjectTERMS OF TRADE
dc.subjectEQUILIBRIUM WAGES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectTRADE
dc.subjectGOODS
dc.subjectLAND
dc.subjectLAND PRODUCTIVITY
dc.subjectTHEORY
dc.subjectSECURITY
dc.subjectEDUCATION
dc.subjectINVESTMENT
dc.subjectMARKET EQUILIBRIUM
dc.subjectFEMALE LABOR FORCE
dc.subjectINCOME ELASTICITY OF DEMAND
dc.subjectLABORERS
dc.subjectECONOMIC PROGRESS
dc.subjectSUPPLY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectLABOR SUPPLY
dc.subjectLAW
dc.subjectEQUILIBRIUM PRICES
dc.subjectBORROWING
dc.subjectWOMEN
dc.subjectAGRICULTURAL
dc.subjectINHERITANCE
dc.subjectARBITRAGE
dc.subjectLABOR MARKETS
dc.subjectOUTCOMES
dc.subjectRURAL DEVELOPMENT
dc.subjectADVERSE EFFECTS
dc.subjectPRICES
dc.subjectLABOR REGULATIONS
dc.subjectPOVERTY ALLEVIATION
dc.subjectDEVELOPMENT POLICY
dc.subjectPUBLIC GOODS
dc.titleDo Land Market Restrictions Hinder Structural Change in a Rural Economy?en
dc.title.subtitleEvidence from Sri Lankaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2015-12-22
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2015/12/25713612/land-market-restrictions-hinder-structural-change-rural-economy-evidence-sri-lanka
okr.guid475941467997257010
okr.identifier.doi10.1596/1813-9450-7525
okr.identifier.externaldocumentum090224b083fe6d4a_2_0
okr.identifier.internaldocumentum25713612
okr.identifier.reportWPS7525
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/12/23/090224b083fe6d4a/2_0/Rendered/PDF/Do0land0market0dence0from0Sri0Lanka.pdfen
okr.region.administrativeSouth Asia
okr.region.countrySri Lanka
okr.topicRural Development::Rural Land Policies for Poverty Reduction
okr.topicRural Development::Rural Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicSocial Protections and Labor::Labor Markets
okr.topicRural Development::Common Property Resource Development
okr.unitEnvironment and Energy Team, Development Research Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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