Work

Effect of the Abolition of the Government‐Regulated Marketplace on Labor Market: Evidence from an Emerging Economy

Year: 2025

Type: article

Abstract: ABSTRACT Agricultural marketing in India has been regulated by state governments to facilitate the centralized auction of agricultural produce. In 2006, Bihar, one of the largest states in India, decided to step away from government intervention in agricultural trade, such as through regulated marketplaces known as mandis , to promote private investment. Using the two‐way fixed‐effects estimation model, we find evidence that post‐reform average prices of main crops fell significantly, reducing farm income. Consequently, reduced demand for unskilled labor led to lower wages for field laborers. We discuss policy imperatives in light of new evidence on farmers' response to market liberalization in the agricultural sector.

Source: Review of Development Economics

DOI: 10.1111/rode.13271

Authors: Vikrant K. Kamble, Ashok K. Mishra

Institution: Arizona State University

Language: English

Topic: Agricultural Economics and Practices

Subfield: General Agricultural and Biological Sciences

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Decent work and economic growth, Zero hunger, No poverty, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,350