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Rural non-agricultural activities and poverty in the Brazilian northeast

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  • Francisco de Hollanda Guimarães Ferreira

    () (Department of Economics PUC-Rio)

  • Peter Lanjouw

    (World Bank)

Abstract

This paper combines two complementary data sets to present a disaggregated spatial profile of poverty in the Brazilian Northeast, and to investigate the importance of non-agricultural activities for its rural dwellers. We present both univariate and multivariate profiles of non-agricultural employment and discuss its determinants. While the main occupational difference between the rural poor and the rural non-poor in Brazil seems to be the greater reliance of the former on paid agricultural employment (vis-à-vis own cultivation), rather than access to non-agricultural activities, the evidence nevertheless suggests that diversification into this growing sector provides both an important complement to the budgets of the poor, and possibly a self-insurance mechanism against negative shocks. Despite the substantial heterogeneity of the sector, two general findings are robust: returns to education are comparatively high; and location in relation to urban areas is an important determinant of both employment and earnings in rural non-agricultural activities.

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File URL: ftp://139.82.198.57/pdf/td428.pdf
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Bibliographic Info

Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 428.

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Length: 34 pages
Date of creation: Jun 2000
Date of revision:
Handle: RePEc:rio:texdis:428

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  1. Van der Walle, Dominique & Cratty, Dorothyjean, 2003. "Is the emerging nonfarm market economy the route out of poverty in Vietnam?," Policy Research Working Paper Series 2950, The World Bank.
  2. Lanjouw, Peter, 2001. "Nonfarm Employment and Poverty in Rural El Salvador," World Development, Elsevier, vol. 29(3), pages 529-547, March.
  3. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
  4. Francisco de Hollanda Guimarães Ferreira & Peter Lanjouw & Marcelo Neri, 2000. "A new poverty profile for Brazil using PPV, PNAD and census data," Textos para discussão 418, Department of Economics PUC-Rio (Brazil).
  5. Lanjouw, Peter, 1999. "Rural Nonagricultural Employment and Poverty in Ecuador," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 91-122, October.
  6. Lanjouw, Jean O. & Lanjouw, Peter, 1995. "Rural nonfarm employment : a survey," Policy Research Working Paper Series 1463, The World Bank.
  7. repec:oxf:wpaper:044 is not listed on IDEAS
  8. Lanjouw, Peter & Quizon, Jaime & Sparrow, Robert, 2001. "Non-agricultural earnings in peri-urban areas of Tanzania: evidence from household survey data," Food Policy, Elsevier, vol. 26(4), pages 385-403, August.
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Cited by:
  1. Jann Lay & George Michuki M'Mukaria & Toman Omar Mahmoud, 2007. "Boda Bodas Rule: Non-agricultural Activities and Their Inequality Implications in Western Kenya," Kiel Working Papers 1314, Kiel Institute for the World Economy.

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