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Rachel Glennerster @rglenner
, 6 tweets, 2 min read Read on Twitter
Back in 1974/5 Nick Stern and colleagues started long run panel data on Indian village, Palanpur in UP. Dedigned to collect detailed data on structural change as green revolution took off. Now presenting latest round of data.
Agricultural yield increased dramatically due to doubling of irrigation, more mechanization. Led to big shift in labour to non farm activity although this is very different by caste. Also very big changes in the types of labour contracts.
Peter Lanjow now discussing how detailed village data allows look at inequality within village. In 50s to 70s green revolution led to falling inequality as irrigation access increased to poorer groups. But in 80s to 2000s increasing inequality with non farm labour opportunities.
Mobility improved because some previously lower ranked groups and individuals were able to take advantage of non farm labour opportunities. Agricultural groups initially did well then badly. But intergenerational mobility got worse.
Challenges to standard econ model. Commuting rather than permanent migration. Agriculture not just backward sector but lots of investment. Not just move out of ag but move towards working in multiple sectors. Information flows really important for those who succeed.
Exogenous change to institutions were import. Abolution of Zamindari allowed people to invest in ag. But growth led to endogenous change in institutions. Labour contacts changed and technology changed inst roles. Castes who could not work with draft animals work with tractors.
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