This is the sixth in our series of posts by students on the job market this year.
The productivity of workers in agriculture is generally much lower than in other sectors of the economy (Gollin, Lagakos and Waugh, 2014). This is particularly true in low-income countries, yet these countries generally have the highest shares of the population living in rural areas and working in agriculture (McMillan et al, 2014). So why don’t workers switch jobs into higher productivity (and better paid) occupations? Development economists as far back as Lewis (1954) and Sen (1966) have studied the labor market imperfections that may keep workers in low productivity agriculture despite higher wages elsewhere.