Evolution of Land Distribution in West Bengal 1967-2004: Role of Land Reform and Demographic Changes

Abstract

This paper studies how land reform and population growth affect land inequality and landlessness, focusing particularly on indirect effects owing to their influence on household divisions and land market transactions. Theoretical predictions of a model of household division and land transactions are successfully tested using household panel data from West Bengal spanning 1967-2004. The tenancy reform lowered inequality through its effects on household divisions and land market transactions, but its effect was quantitatively dominated by inequality-raising effects of population growth. The land distribution program lowered landlessness but this was partly offset by targeting failures and induced increases in immigration.

Keywords: inequality, land reform, household division, land markets

JEL Classification: J12, O13, O13