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Property Rights and Labour Supply in Ethiopia

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This paper investigates the change in labour supply patterns by agricultural households as a result of formalization of their land-use rights. The findings are based on panel data collected before… Click to show full abstract

This paper investigates the change in labour supply patterns by agricultural households as a result of formalization of their land-use rights. The findings are based on panel data collected before and after a land registration programme which demarcated and provided legal recognition of the landholdings of households in the Amhara region in Ethiopia. Using a semi-parametric difference-in-difference strategy, we find that the provision of documentary evidence of land rights freed household time otherwise allocated to safeguard their landholdings from encroachment. The reduction in labour supply is driven by a decrease of time allocated to pre-planting activities requiring households to leave their land vacant until the most suitable time for planting. Indeed disputes over land boundaries are associated with neighbouring landholders pushing the boundaries of their holdings during ploughing.

Keywords: supply; property rights; supply ethiopia; land; rights labour; labour supply

Journal Title: Annals of economics and statistics
Year Published: 2018

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