Template-Type: ReDIF-Paper 1.0
Author-Name: Rajveer Jat
Author-Name-First: Rajveer
Author-Name-Last: Jat
Author-Email: rjat001@ucr.edu
Author-Workplace-Name: University of California, Riverside, USA
Author-Name: Bharat Ramaswami
Author-Name-First: Bharat
Author-Name-Last: Ramaswami
Author-Email: bharat.ramaswami@ashoka.edu.in
Author-Workplace-Name: Ashoka University
Title: The Agricultural Productivity Gap: Informality Matters
Abstract: The literature has debated whether the productivity gap between agriculture and non-agriculture reflects mobility barriers or selection. Non-agriculture is not a homogenous category. In developing countries, most of non-agricultural employment is informal. Could it be that the productivity gap is driven by formal sector firms that are numerically small but economically substantial? This paper compares the productivity of agriculture to the informal and formal non-farm sectors in India. The comparison controls for sectoral differences in hours worked, human capital and labor share of value added. The paper finds substantial productivity gaps with the formal sector but small and negligible gaps with the informal non-farm sector. Between 40-50% of non-farm workers are in sectors not more
productive than agriculture. These findings suggest that the primary dualism in development is between the formal non-farm sector and the informal sector including agriculture.
length: 28
Creation-Date: 20241025
Revision-Date: 
Publication-Status: 
File-URL:/www/wwwashokaeduin_628/public/dp/RePEc/ash/wpaper/paper130_0.pdf
File-Format: Application/pdf 
Number: 130
Handle: RePEc:ash:wpaper:130