Transaction Costs, Land Rental Markets, and Their Impact on Youth Access to Agriculture in Tanzania

We use three waves of nationally representative panel data from Tanzania to estimate the extent to which land rental markets provide a pathway for youth to enter into agriculture. We also investigate how transaction costs may impede youth access to renting-in land. Results suggest that rental markets are important mechanisms through which young farmers access land, but younger farmers face higher transaction costs when renting land than do older farmers. We also find evidence that younger farmers pay higher prices for rented land and are somewhat less likely to belong to village savings groups than are their older counterparts. (JEL O12, Q15)