Market Failure And Land Concentration
Source: Levy Economics Institute
Utilizing a 2002 household-level World Bank Survey for rural Turkey, this paper explores the link between concentration of land ownership and rural factor markets. The authors construct a unique index that measures market malfunctioning based on the neoclassical model linking land and labor endowments through factor markets to household income. They further test whether land ownership concentration affects market malfunctioning. Their empirical investigation supports the claim that factor markets are structurally limited in reducing existing inequalities as a result of land ownership concentration.