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Figure 68 de MC schedules like that in Figure 6 8h and increase the quantity of lb demanded at any wape. lo most cases GreeFigure 68 de MC schedules like that in Figure 68hand increase the

Figure 68 de MC schedules like that in Figure 6.8h, and increase the quantity of lb demanded at any wape. lo most cases, Gree

Figure 68 de MC schedules like that in Figure 6.8h, and increase the quantity of lb demanded at any wape. lo most cases, Green Revolution seed use was adopted on land previousiy devoted to cultivation of tradiional varieties of the same crops, lending to mcrease anual p ae labor mquirements by 20 or 30 percent (Liphon and Longhurst, 1989). In a few ciees fe gaer prolitability of Gmen Revoltion seeds led to crop substitution, in which Groen Revo Ts were planted on sly d semploying more labor per icre, and PROBLEMS ed Alocation and hodcton Chokes 1. Re-read the discussion of Green Revolution impacts on rural labor markets in Chapter 6. That section presents a puzzle. The Green Revolution seemed to increase rural wages but reduce agricultural employment. This is difficult to explain as a result of a shift only in the agricultural demand for labor. The section argues that to understand these changes we must incorporate the rural nonfarm sector into our analysis. Draw figures like those in the three panels of Figure 9.2, labeling them appropriately so that the first panel represents agricultural demand for labor in a particular rural community, the second represents nonagricultural demand for labor in the same community, and the third represents the total demand for and supply of labor in the community. Draw in new agricultural and nonagricultural labor demand schedules (representing one shift of each schedule) that might follow from the adoption of Green Revolution technologies and that lead to a new equilibrium in which local wages have risen and agricultural employ- ment has fallen. Please assume that the Green Revolution technologies are labor using. In what direction must the non-farm labor demand shift for the net result of the two demand schedule shifts to yicld the indicated outcomes G.e., higher wages and lower agricultural employment)? What are the impacts of such changes on nonagricultural employment and total employment? What impact must the adoption of Green Revolution technologies have on markets for goods produced by the nonagricultural sector to generate agricultural and nonagricultural demand shifts like this? pdaction of ie and other re Revalation crepm Anding to raise VM 6.4C The green revolution's impact on rural labor Mechanization and reductions in agricultural employment often followed closely aher the adoption of Green Revolution soed varieties. This correlation in time led many observers to criticize the Green Revolution for displacing agricultural labor and worsening the plight of landless nural workers (Lipton and Longhurst, 1989: Hazell and Ramasamy, 1991) Dees claser examination support the coniention that the Groeo Revolution reduced the well being of rural waekers by reducing labor demand? Accarding to basic producer thoory, when we want to understand what is happening to the quantity of lahur demanded by a sector, it is useful to understand what is happening to tochno logical options. The main Gireen Revolution tochnalogical advance was the development of new varicties of rice, com, and wheat that were more efficient at turning fertilizer and water into edible grain. They made higher yields per acre possible, but only when accompanied by greater fertilizer use, more carefully controlled watering, axd more careful pest managerment Mast analysts agree that if prices and wages had beld constant, adoption of Green Revo- lution seed varieties would have increased the quantity af labor demanded in agriculture. The yields of the new varieties were much more responsive to increases in fertilizer use and weed cunerol. By increasing yields, use of the new varieties increased the work that needed to be done at harvest time. The technology thus increasod the marginal productivity of labor time devoted to they might thes have redued the average per acre cemand for labar (see Bayri and Furtan, 1 on Turkey1 hut sach cases were rare. Despite tochnological reasons to believe that dhe Gereen Revolution would have increased he quantity of labor demanded by 20 or 30 percot thad all clse remained equal), agrcuh employment sended so rise by mach les than 20 peroent oner periods of Green Revalaio espunsion, and in seme cases it even fell (Otspkz et al., 19NI. This redction in labor use, whie farmers wore adoping the Gmen Revolition technology and expanfing output, was passible oth because famers simaltuneously adpied odher (labor savingi techeological advances. For exampk anong rice producers in the Philippines trictors eplaced oxen in land preparation, the practice of edablishing soedlings in specialinod soed heds and then transplanting them into flooded 6eld hand (which required mach labor per acre) were replaced by direct planting (in which roa seeded diretly into the field and hnd threshing ans plaxed by mechanical threshine There was nothing about the Green Revolution secd varieties that required these new lsbos saving practices, so what motivated their aduption? Two chserved changes stand out. Fint, t mad cases wages were tising, eacounging farmes to adopt laher-saving technalogical charges on lop af Creen Revolation changes. Seccnd, soeer mes laboe-saving technolagies (which wou have been profisable carlier, but were nor 2vailable) were newly introduced during this period. Fr example, in the Philippiaes he develogmsest of chemical herbicides encouraged farmers to shil foan ransplanting seeds ins fooded fiekds (uhere fiooding prevented weed growth) te dred planting combined wih herbicide use, and the development of smaller, more potable thestes encouragod small farmers to switch from mnual to mechanical theshing. Regression analypis indicates that reductions in agricultaral emplaymest are better explained by tising wages an independent intraluon of lalser-savag cchrolagies than hy adeption of Green Revolaticn sl varieties (Obaika et al. 1991, The very fact that wages were cising must give us puse. If the oely fooce for change dit the period was the intmodacticn of Gircen Revolutin technolorics, and if the Grcen Reveluh technokogies had redaced the denund fue labor, then wages should bave fallen rather than esa Thus a simple stury in which the Green Revolutiun forcod labor displacement and impuveril ment of nural labor cannce be right What cased wages to rise? The adopticn of Green Revolutine methods in agriculture od saded to incase the agriculund desand for labor, as described above. On top of this, in rary acessl Grem Revolurion regiors the ninl neficma ncooy also expanded rapidly, sist that secior's demand for labor (eg. Ilazall and Ramaswamy, 1991) Many researchers beliet that this expansion of the nal ncfaa soutor wIs itselt indirectly induced by the Green Ret- oluion, as expanded agricsitual peoducicn and inoomes increised deenand for agriculus inputs and consimer goods peoduced by the wonfarm sector. The resalting inccase in priges nonfarm ods and srvices led jo ncreases is C spos derived deinand for labor. We conclade that

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