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Labour Productivity in Indian Agriculture

G S Bhalla Y K Alagh The results of regression exercises for various subsets of districts classified according to growth of output tend to confirm the hypothesis that labour productivity in agriculture is determined by the use of capital inputs on the one hand and output-augmenting modern biological inputs on the other. Since high growth districts are the predominant users of available tractors and tubewells (and other inputs) in the country, capital intensity per worker is the main determinant of labour productivity in these districts. Fixed capital alone is important, but the addition of variables like gross cropped area and fertilisers results in significant increase in the explanation of variation in labour productivity.

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