Florence Kondylis

World Bank
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Washington, DC 20415

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Institutional Affiliation: World Bank

NBER Working Papers and Publications

January 2020Factor Market Failures and the Adoption of Irrigation in Rwanda
with Maria Jones, John Loeser, Jeremy Magruder: w26698
We examine constraints to adoption of new technologies in the context of hillside irrigation schemes in Rwanda. We leverage a plot-level spatial regression discontinuity design to produce 3 key results. First, irrigation enables dry season horticultural production, which boosts on-farm cash profits by 70%. Second, adoption is constrained: access to irrigation causes farmers to substitute labor and inputs away from their other plots. Eliminating this substitution would increase adoption by at least 21%. Third, this substitution is largest for smaller households and wealthier households. This result can be explained by labor market failures in a standard agricultural household model.

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