Rural India
1 INTRODUCTION
Access to land is of fundamental importance in rural India. The incidence of poverty is highly correlated with lack of access to land, although the direction of causality in this relationship is not clear.
Households that depend on agricultural wage labor account for less than a third of all rural households but make up almost half of those living below the poverty line.
Many of these households also own some land, but in holdings that are so small or unproductive that their owners derive a greater share of their livelihoods from their own labor than from their own land.
Land plays a dual role in rural India: aside from its value as a productive factor, land ownership confers collateral in credit markets, security in the event of natural hazards or life contingencies, and social status. Those who control land tend to exert a disproportionate influence over other rural institutions, including labor and credit markets.
The international evidence now strongly......
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