Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We study how rights-based resource management can trigger labor reallocation and development in a dual economy. Under open access, resource users may remain trapped in poverty. Regulation of resource use generates rents that can finance labor reallocation to resource-independent production. Transferability of harvest quotas broadens the scope for labor reallocation, in particular if harvest quotas are distributed unequally. Once the process of labor reallocation is started, it continues until a long-run efficient labor allocation is achieved. We use data from an Indian fishery to illustrate numerically how the design and distribution of harvest quotas affects labor, wealth, and resource dynamics in a rural economy.