ABSTRACT
There have been many empirical studies of efficiency of sharecropping, especially in Asia (Otsuka and Hayami 1988). Most empirical studies compare the efficiency of sharecroppers with owner-operators and fixed-rent tenants, and have failed to control well for tenant and plot characteristics. Most studies have also failed to explain why specific sharecroppers are efficient or not. Exceptions include Sadoulet et al. (1997) who found sharecroppers with a kinship relationship with the landlord not to be affected by the Marshallian disincentive effect, whereas other sharecroppers were. We follow up on this and assess the importance of kinship for sharecropping efficiency in our study in the Ethiopian highlands.
