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The Role of Labor Markets and Human Capital in Poverty Reduction: Evidence from Asia and Africa

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  • Keijiro X_Otsuka

    ()
    (National Graduate Institute for Policy Studies, Japan)

  • Jonna P. Estudillo

    ()
    (National Graduate Institute for Policy Studies, Japan)

  • Takashi Yamano

    ()
    (International Rice Research Institute (IRRI))

Abstract

Using long-term panel data sets of rural households in the Philippines, Thailand, Bangladesh, and Tamil Nadu (India), a short-term panel data set in Mozambique, and cross-section data sets in Kenya, Uganda, and Ethiopia, the roles of labor markets in the long-term process of poverty reduction in Asia were examined in comparison with the current situation in Africa. There are three main findings. First, reliance on agricultural labor markets alone will not reduce poverty to a significant extent, in view of the declining share of agricultural wage income in Asia and its negligibly low level in Africa. Second, an increased non-farm income is a decisive factor in reducing rural poverty because it has become the major source of the rise in household income. Third, labor markets are clearly segmented in accordance with the schooling levels, where the younger and more educated children are engaged in lucrative non-farm labor employment in order to capture the high returns in schooling in this sector.

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Bibliographic Info

Article provided by Southeast Asian Regional Center for Graduate Study and Research in Agriculture in its journal Asian Journal of Agriculture and Development.

Volume (Year): 7 (2010)
Issue (Month): 1 (June)
Pages: 23-40

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Handle: RePEc:sag:seajad:v:7:y:2010:i:1:p:23-40

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  1. Jayne, Thomas S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David L. & Benfica, Rui M.S. & Neven, David & Chapoto, Antony & Zulu, Ballard, 2002. "Smallholder Income And Land Distribution In Africa: Implications For Poverty Reduction Strategies," 2002 Annual meeting, July 28-31, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19692, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Otsuka, Keijiro & Place, Frank, 2001. "Land tenure and natural resource management," Food policy statements, International Food Policy Research Institute (IFPRI) 34, International Food Policy Research Institute (IFPRI).
  3. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, Blackwell, vol. 26(1), pages 1-23, October.
  4. Michelle Adato & Michael Carter & Julian May, 2006. "Exploring poverty traps and social exclusion in South Africa using qualitative and quantitative data," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 42(2), pages 226-247.
  5. Kei Kajisa, 2007. "Personal Networks and Nonagricultural Employment: The Case of a Farming Village in the Philippines," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 55, pages 669-707.
  6. Takahashi, Kazushi & Otsuka, Keijiro, 2007. "Human Capital Investment and Poverty Reduction over Generations: A Case from the Rural Philippines, 1979-2003," IDE Discussion Papers, Institute of Developing Economies, Japan External Trade Organization(JETRO) 96, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  7. J. Estudillo & A. Quisumbing & K. Otsuka, 2001. "Gender Differences in Land Inheritance, Schooling and Lifetime Income: Evidence from the Rural Philippines," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(4), pages 23-48.
  8. Otsuka, Keijiro & Place, Frank (ed.), 2001. "Land tenure and natural resource management: A comparative study of agrarian communities in Asia and Africa," IFPRI books, International Food Policy Research Institute (IFPRI), number 0-8018-6747-9.
  9. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 26(1), October.
  10. Estudillo, Jonna P & Otsuka, Keijiro, 1999. "Green Revolution, Human Capital, and Off-Farm Employment: Changing," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 47(3), pages 497-523, April.
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Cited by:
  1. Otsuka, Keijiro, 2012. "Presidential Address at 27th International Conference of Agricultural Economists, Foz do IguaƧu, Brazil : Food Insecurity, Income Inequality, and the Changing Comparative Advantage in World Agricultu," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 127068, International Association of Agricultural Economists.
  2. Muto, Megumi, 2009. "The impacts of mobile phone coverage expansion and personal networks on migration: evidence from Uganda," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51898, International Association of Agricultural Economists.

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