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Locational Determinants of Rural Non-agricultural Employment: Evidence From Brazil

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  • Erik Jonasson

    ()
    (Lund University, Sweden)

  • Steven M Helfand

    ()
    (Department of Economics, University of California Riverside)

Abstract

By paying particular attention to the local economic context, this paper analyzes the determinants of non-agricultural employment and earnings in non-agricultural jobs. The empirical analysis is based on the Brazilian Demographic Census, allowing for disaggregated controls for the local economy. Education stands out as one of the key determinants of employment outcome and earnings potential. Failure to control for locational effects, however, can lead to biased estimation of the importance of individual and household-specific characteristics. The empirical results show that local market size and distance to population centers have a significant impact on non-agricultural employment prospects and earnings.

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File Function: First version, 2008
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Bibliographic Info

Paper provided by University of California at Riverside, Department of Economics in its series Working Papers with number 200802.

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Length: 33 pages
Date of creation: Jan 2008
Date of revision: Jan 2008
Handle: RePEc:ucr:wpaper:200802

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Keywords: Rural non-agricultural employment; economic geography; Latin America; Brazil;

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  1. Yang, Dennis T. & An, Mark Yuying, 1997. "Human Capital, Entrereneurship, and Farm Household Earnings," Working Papers, Duke University, Department of Economics 97-03, Duke University, Department of Economics.
  2. Ferreira, Francisco H. G. & Lanjouw, Peter, 2001. "Rural Nonfarm Activities and Poverty in the Brazilian Northeast," World Development, Elsevier, Elsevier, vol. 29(3), pages 509-528, March.
  3. 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.
  4. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198296966, October.
  5. Sonia Laszlo, 2005. "Self-employment earnings and returns to education in rural Peru," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 41(7), pages 1247-1287.
  6. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, Elsevier, vol. 29(3), pages 497-508, March.
  7. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  8. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  9. Alberto Isgut, 2004. "Non-farm Income and Employment in Rural Honduras: Assessing the Role of Locational Factors," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(3), pages 59-86.
  10. 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.
  11. Corral, Leonardo & Reardon, Thomas, 2001. "Rural Nonfarm Incomes in Nicaragua," World Development, Elsevier, Elsevier, vol. 29(3), pages 427-442, March.
  12. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, Elsevier, vol. 29(3), pages 395-409, March.
  13. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, Elsevier, vol. 26(4), pages 315-331, August.
  14. Graziano da Silva, Jose & Eduardo Del Grossi, Mauro, 2001. "Rural Nonfarm Employment and Incomes in Brazil: Patterns and Evolution," World Development, Elsevier, Elsevier, vol. 29(3), pages 443-453, March.
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