Contrary to theories emphasising the importance of asset ownership for helping the rural poor out of poverty, a study by A. Nilesh Fernando at Harvard shows that in India, inheriting agricultural land can both restrict migration to urban areas (-0.02pc per acre) and reduce the likelihood of taking up nonagricultural work in rural areas (-1.8pc per acre). The effect of inheriting an additional acre is 10 times as large (-3.4pc per acre for migration; -21pc per acre for nonagricultural occupations) for those born into families with relatively small landholdings (less than three acres). Because selling, renting or leaving behind assets is restricted by cultural obligations — in this case, Hindu custom requires that the eldest son in the family support his parents in their old age, which often results in occupational succession — inheriting land can limit mobility for the poor, specifically firstborn sons.

(Source: Harvard)

Published in Dawn, Business & Finance weekly, February 22nd, 2016

Opinion

Editorial

Chilas bus attack
Updated 05 Dec, 2023

Chilas bus attack

Locals, particularly in Diamer and Kohistan, need to be on board to ensure that militants have no place to hide.
State’s insecurities
05 Dec, 2023

State’s insecurities

ONE hopes that the Khyber Pakhtunkhwa governor’s recent remarks regarding the ‘less-than-ideal’ security...
Underage driving
05 Dec, 2023

Underage driving

SIX lives — all members of a single family — were recently lost in Lahore to the unabated menace of underage...
Electable politics
Updated 04 Dec, 2023

Electable politics

With the PTI still on the wrong side of the political equation, the prospects will be bright for whoever takes the lead.
War of narratives
04 Dec, 2023

War of narratives

MILITARILY, there is no match between the Israeli war machine, and the defenceless people of Gaza. On one side is a...
Returns on deposits
04 Dec, 2023

Returns on deposits

DESPITE the deceleration of deposit mobilisation, bank deposits have jumped to a record high of Rs25.6tr in FY23. ...