General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka

Taking advantage of a historical quasi-experiment in Sri Lanka, this paper provides evidence on the effects of land market restrictions on wages and its spatial pattern. The empirical specification is derived from a general equilibrium model that p...

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Main Authors: Emran, M. Shahe, Shilpi, Forhad
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101027083834
http://hdl.handle.net/10986/3942
id okr-10986-3942
recordtype oai_dc
spelling okr-10986-39422021-04-23T14:02:13Z General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka Emran, M. Shahe Shilpi, Forhad ACCESS TO EDUCATION AGGLOMERATION ECONOMIES AGRICULTURAL DEVELOPMENT AVERAGE TRAVEL TIME CETERIS PARIBUS CITIZENS CULTURAL CHANGE DEVELOPING COUNTRIES DRAINAGE ECONOMIC GROWTH ECONOMICS EDUCATIONAL ATTAINMENT ELASTICITIES ELASTICITY EQUITABLE ACCESS EQUITY IMPACTS FAMILY MEMBERS GOVERNMENT POLICIES HEALTH FACILITIES HEAVY VEHICLES HIGHWAY HIGHWAYS HOUSEHOLD INCOME HUMAN CAPITAL INDUSTRIALIZATION INFECTION RATES INFORMATION SYSTEM INHERITANCE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR SUPPLY LAND DEVELOPMENT LAND MARKETS LAND PRODUCTIVITY LAND TENURE LOCAL ECONOMY LOW LABOR PRODUCTIVITY MALARIA MARITAL STATUS MIGRATION MOBILITY POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY RESTRICTIONS POLITICAL ECONOMY POPULATION GROWTH PRIMARY SCHOOL PRIVATE PROPERTY RIGHTS PRODUCTIVITY PROGRESS PROPERTY RIGHTS PUBLIC HEALTH PUBLIC SERVICES RESETTLEMENT RESPECT ROAD ROAD NETWORK ROADS ROUTE RURAL AREAS RURAL DEVELOPMENT RURAL POVERTY SAFETY SAVINGS SOCIAL IMPACT SOCIAL SCIENCE SOCIAL SERVICES SPATIAL DISTRIBUTION SPEEDS STREETS TRANSPORT TRANSPORT ENGINEERING TRANSPORT INFRASTRUCTURE TRANSPORTATION TRANSPORTATION ENGINEERING TRAVEL SPEED TRAVEL TIME TRUCKS TYPES OF ROADS UNEMPLOYMENT URBAN URBAN CENTER URBAN CENTERS URBAN HOUSING URBAN MIGRATION VEHICLE WAR YOUNG MEN Taking advantage of a historical quasi-experiment in Sri Lanka, this paper provides evidence on the effects of land market restrictions on wages and its spatial pattern. The empirical specification is derived from a general equilibrium model that predicts that the adverse effects of land market restrictions on wages will be less in remote locations. For identification, the study exploits the effects of historical malaria prevalence on the incidence of land restrictions through its effects on "crown land". During the 16th to early 20th centuries, areas severely affected by malaria were abandoned by households and the land was taken over by the government. These lands that were later distributed through resettlement programs are subject to sales, rental, and mortgage restrictions. The variations in the amount of crown land resulting from different intensity of historical malaria provide a source of exogenous variations in the incidence of land restrictions in a sub-district. The results show that land restrictions reduce wages substantially, and this effect is smaller in remote locations. A 1 percent increase in land restrictions reduces wages by about 6.6 percent at the median travel time from an urban center, and the effect becomes effectively zero after 6 hours of travel time. 2012-03-19T18:42:34Z 2012-03-19T18:42:34Z 2010-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101027083834 http://hdl.handle.net/10986/3942 English Policy Research working paper ; no. WPS 5461 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia South Asia Asia Sri Lanka
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO EDUCATION
AGGLOMERATION ECONOMIES
AGRICULTURAL DEVELOPMENT
AVERAGE TRAVEL TIME
CETERIS PARIBUS
CITIZENS
CULTURAL CHANGE
DEVELOPING COUNTRIES
DRAINAGE
ECONOMIC GROWTH
ECONOMICS
EDUCATIONAL ATTAINMENT
ELASTICITIES
ELASTICITY
EQUITABLE ACCESS
EQUITY IMPACTS
FAMILY MEMBERS
GOVERNMENT POLICIES
HEALTH FACILITIES
HEAVY VEHICLES
HIGHWAY
HIGHWAYS
HOUSEHOLD INCOME
HUMAN CAPITAL
INDUSTRIALIZATION
INFECTION RATES
INFORMATION SYSTEM
INHERITANCE
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LABOR SUPPLY
LAND DEVELOPMENT
LAND MARKETS
LAND PRODUCTIVITY
LAND TENURE
LOCAL ECONOMY
LOW LABOR PRODUCTIVITY
MALARIA
MARITAL STATUS
MIGRATION
MOBILITY
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLICY RESTRICTIONS
POLITICAL ECONOMY
POPULATION GROWTH
PRIMARY SCHOOL
PRIVATE PROPERTY RIGHTS
PRODUCTIVITY
PROGRESS
PROPERTY RIGHTS
PUBLIC HEALTH
PUBLIC SERVICES
RESETTLEMENT
RESPECT
ROAD
ROAD NETWORK
ROADS
ROUTE
RURAL AREAS
RURAL DEVELOPMENT
RURAL POVERTY
SAFETY
SAVINGS
SOCIAL IMPACT
SOCIAL SCIENCE
SOCIAL SERVICES
SPATIAL DISTRIBUTION
SPEEDS
STREETS
TRANSPORT
TRANSPORT ENGINEERING
TRANSPORT INFRASTRUCTURE
TRANSPORTATION
TRANSPORTATION ENGINEERING
TRAVEL SPEED
TRAVEL TIME
TRUCKS
TYPES OF ROADS
UNEMPLOYMENT
URBAN
URBAN CENTER
URBAN CENTERS
URBAN HOUSING
URBAN MIGRATION
VEHICLE
WAR
YOUNG MEN
spellingShingle ACCESS TO EDUCATION
AGGLOMERATION ECONOMIES
AGRICULTURAL DEVELOPMENT
AVERAGE TRAVEL TIME
CETERIS PARIBUS
CITIZENS
CULTURAL CHANGE
DEVELOPING COUNTRIES
DRAINAGE
ECONOMIC GROWTH
ECONOMICS
EDUCATIONAL ATTAINMENT
ELASTICITIES
ELASTICITY
EQUITABLE ACCESS
EQUITY IMPACTS
FAMILY MEMBERS
GOVERNMENT POLICIES
HEALTH FACILITIES
HEAVY VEHICLES
HIGHWAY
HIGHWAYS
HOUSEHOLD INCOME
HUMAN CAPITAL
INDUSTRIALIZATION
INFECTION RATES
INFORMATION SYSTEM
INHERITANCE
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LABOR SUPPLY
LAND DEVELOPMENT
LAND MARKETS
LAND PRODUCTIVITY
LAND TENURE
LOCAL ECONOMY
LOW LABOR PRODUCTIVITY
MALARIA
MARITAL STATUS
MIGRATION
MOBILITY
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLICY RESTRICTIONS
POLITICAL ECONOMY
POPULATION GROWTH
PRIMARY SCHOOL
PRIVATE PROPERTY RIGHTS
PRODUCTIVITY
PROGRESS
PROPERTY RIGHTS
PUBLIC HEALTH
PUBLIC SERVICES
RESETTLEMENT
RESPECT
ROAD
ROAD NETWORK
ROADS
ROUTE
RURAL AREAS
RURAL DEVELOPMENT
RURAL POVERTY
SAFETY
SAVINGS
SOCIAL IMPACT
SOCIAL SCIENCE
SOCIAL SERVICES
SPATIAL DISTRIBUTION
SPEEDS
STREETS
TRANSPORT
TRANSPORT ENGINEERING
TRANSPORT INFRASTRUCTURE
TRANSPORTATION
TRANSPORTATION ENGINEERING
TRAVEL SPEED
TRAVEL TIME
TRUCKS
TYPES OF ROADS
UNEMPLOYMENT
URBAN
URBAN CENTER
URBAN CENTERS
URBAN HOUSING
URBAN MIGRATION
VEHICLE
WAR
YOUNG MEN
Emran, M. Shahe
Shilpi, Forhad
General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka
geographic_facet South Asia
South Asia
South Asia
Asia
Sri Lanka
relation Policy Research working paper ; no. WPS 5461
description Taking advantage of a historical quasi-experiment in Sri Lanka, this paper provides evidence on the effects of land market restrictions on wages and its spatial pattern. The empirical specification is derived from a general equilibrium model that predicts that the adverse effects of land market restrictions on wages will be less in remote locations. For identification, the study exploits the effects of historical malaria prevalence on the incidence of land restrictions through its effects on "crown land". During the 16th to early 20th centuries, areas severely affected by malaria were abandoned by households and the land was taken over by the government. These lands that were later distributed through resettlement programs are subject to sales, rental, and mortgage restrictions. The variations in the amount of crown land resulting from different intensity of historical malaria provide a source of exogenous variations in the incidence of land restrictions in a sub-district. The results show that land restrictions reduce wages substantially, and this effect is smaller in remote locations. A 1 percent increase in land restrictions reduces wages by about 6.6 percent at the median travel time from an urban center, and the effect becomes effectively zero after 6 hours of travel time.
format Publications & Research :: Policy Research Working Paper
author Emran, M. Shahe
Shilpi, Forhad
author_facet Emran, M. Shahe
Shilpi, Forhad
author_sort Emran, M. Shahe
title General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka
title_short General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka
title_full General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka
title_fullStr General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka
title_full_unstemmed General Equilibrium Effects of Land Market Restrictions on Labor Market : Evidence from Wages in Sri Lanka
title_sort general equilibrium effects of land market restrictions on labor market : evidence from wages in sri lanka
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101027083834
http://hdl.handle.net/10986/3942
_version_ 1764389133484032000