The purpose of this study is to analyze the agricultural seasonal labor contract system and mainly the rural labor cooperatives, from the legal system’s point of view. Legal institutions are important components that affect the agricultural seasonal labor contract. Therefore, these institutions trend to restrict some contract frameworks and to provide incentive to other contracts. The work verified that rural labor cooperatives have high restrictions from legal institutions. The reason is the high incidence of corruption in this contract system. Thus, there is a potential increase in the transactions cost of the labor contract system.


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