Labour Contracts in Rural India: Theories and Evidence

  • Jean P. Drèze
  • Anindita Mukherjee
Part of the International Economic Association Series book series (IEA)


The last few decades have seen a proliferation of theories aiming at a better understanding of rural labour markets in developing countries: from early ‘subsistence theories’ where the determination of wages was regarded as largely ‘exogenous’ to labour market conditions, through the revival of the competitive paradigm, to the more recent and sophisticated models focusing on incomplete information, uncertainty or bargaining situations. Over the same period a large number of microstudies undertaken in Indian villages by social scientists of all disciplines have provided valuable empirical evidence on how rural labour markets actually function in that country. Unfortunately, much of this material has remained insufficiently known to theorists, and its potential in helping to form a judgement about the usefulness of alternative theories is still largely unexploited.


Real Wage Labour Contract Daily Wage Efficiency Wage Piece Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© International Economic Association 1989

Authors and Affiliations

  • Jean P. Drèze
    • 1
  • Anindita Mukherjee
    • 2
  1. 1.London School of Economics and Political ScienceUK
  2. 2.Indian Statistical InstituteNew DelhiUK

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