Munich Personal RePEc Archive

Family Labourforce as a Determinant of Tenancy-Labour Interlinked Contract

Kundu, AMIT (2007): Family Labourforce as a Determinant of Tenancy-Labour Interlinked Contract.

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In this interlinked contract land market is tied with labour market. The landlord leases-out small size of land to the landless agricultural labour households under fixed rent system prior to agricultural peak season on the basis of their commitment to work under his field through out that season. A household can bind itself in such a contract if and only if it has certain number of family labour force. But which households can ultimately tie them in such a contract is totally decided by the market force in that village economy where the family labour force is the determining factor. The paper also shows that this interlinked contract may generate involuntary unemployment in the agricultural labour market and under certain conditions the tied households can not only cross the reservation level of income but also can cross the poverty line.

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