Baland, Jean-Marie; Drèze, Jean; LeRuth, Luc - In: Journal of development economics 59 (1999) 2, pp. 445-461
The paper presents an analysis of the coexistence of daily-wage and piece-rate contracts in agrarian economies. We show that, when individual effort is taken into account, daily-wage labourers typically form a convex set in the space of working ability. We also prove that, on a monopsonistic...