Empowerment and Efficiency: Tenancy Reform in West Bengal

The paper analyzes the effect of agricultural tenancy laws offering security of tenure to tenants and regulating the share of output that is paid as rent on farm productivity. Theoretically, the net impact of tenancy reform is shown to be a combination of two effects: a bar-gaining power effect and a security of tenure effect. Analysis of evi-dence on how contracts and productivity changed after a tenancy reform program was implemented in the Indian state of West Bengal in the late 1970s suggests that tenancy reform had a positive effect on agricultural productivity there. We are grateful to the editor, Sherwin Rosen, and three anonymous referees for detailed comments, from which the paper benefited significantly. We are indebted to Maitreya Ghatak for his advice and support at all stages of the project, and especially in conducting the survey. Special thanks are due to Debraj Ray and Esther Duflo, whose valuable sug-gestions greatly influenced our approach. Thanks are also due to D. Bandyopadhyay