Food Prices, Wages, and Welfare in Rural India

18 Pages Posted: 27 Nov 2015

See all articles by Hanan G. Jacoby

Hanan G. Jacoby

World Bank - Agriculture and Rural Development Department; World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2016

Abstract

With soaring food prices in recent years has come alarm about rising poverty in the developing world. Less appreciated, however, is that many of the poor in agricultural economies may benefit from higher wages. This study finds that wages for manual labor in rural India, both within and outside agriculture, rose faster in districts growing more of those crops with large producer price run‐ups over the 2004–2009 period. Based on a general equilibrium framework that accounts for such wage gains, rural households across the income spectrum are found, contrary to more conventional welfare analysis, to benefit from higher agricultural prices.

JEL Classification: Q17, Q18, F14

Suggested Citation

Jacoby, Hanan G., Food Prices, Wages, and Welfare in Rural India (January 2016). Economic Inquiry, Vol. 54, Issue 1, pp. 159-176, 2016, Available at SSRN: https://ssrn.com/abstract=2695905 or http://dx.doi.org/10.1111/ecin.12237

Hanan G. Jacoby (Contact Author)

World Bank - Agriculture and Rural Development Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/hjacoby

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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