Revisiting the relationship between farm mechanization and labour requirement in India

Abstract In many developing and emerging economies, better employment opportunities in the non-farm sector have increased rural wages due to labour shortages during peak agricultural season. Increasing often cause a substitution of for mechanical power, but extensive use labour-saving technologies may displacement serious equity concerns. Using household individual fixed effect estimation approach, this paper analyses relationship between different types farm machines requirements India. The results suggest that unit increase level mechanization increases demand hired by 12%. Moreover, we find has positive on women’s participation work, while it decreases probability children participating agriculture-related work. Disaggregated analysis based machinery suggests water-lifting equipment, draft power tractors male members working their farms, all machines, except tractors, female participation. We also as size increases.