Sharecropping contracts in rural India: A note

In this article we examine the terms of sharecropping contracts using data from rural India. We examine the effect of - (1) the sharing of input costs between landlord and tenant; (2) the tenant's capacity to borrow; and (3) the existence of outside employment opportunities for the tenant — on the share parameter. We regress the share paid by the household on a set of cultivating household and village level characteristics and find that cost sharing and the existence of outside employment opportunities significantly affect the share parameter.