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Cooperative Property Rights and Development: Evidence from Land Reform in El Salvador

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  • Eduardo Montero

Abstract

In cooperative property rights systems, workers jointly own and manage production, whereas in outside-ownership systems, an owner contracts workers. Despite a rich literature on how the allocation of property rights matters for specialization, efficiency, and equity, little causal evidence exists. During a land reform in El Salvador in 1980, the military government reorganized properties owned by individuals with cumulative landholdings over 500 hectares into cooperatives; properties below this threshold remained as outside-owned properties. Using the discontinuous probability of cooperative formation, I provide evidence on the effects of cooperative property rights relative to outside ownership on specialization, productivity, and worker equity.

Suggested Citation

  • Eduardo Montero, 2022. "Cooperative Property Rights and Development: Evidence from Land Reform in El Salvador," Journal of Political Economy, University of Chicago Press, vol. 130(1), pages 48-93.
  • Handle: RePEc:ucp:jpolec:doi:10.1086/717042
    DOI: 10.1086/717042
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    Cited by:

    1. Anders Kjelsrud & Andreas Kotsadam & Ole Rogeberg, 2023. "Cooperative Property Rights and Development: Evidence from Land Reform in El Salvador: A Comment," Journal of Political Economy, University of Chicago Press, vol. 131(8), pages 2276-2285.
    2. Rao, Manaswini & Shenoy, Ashish, 2023. "Got (clean) milk? Organization, incentives, and management in Indian dairy cooperatives," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 708-722.
    3. Abel, Martin & Burger, Rulof, 2022. "Choice over Payment Schemes and Worker Effort," IZA Discussion Papers 15769, Institute of Labor Economics (IZA).
    4. Jose Garcia-Louzao & Gabriel Burdin, 2023. "Employee Owned Firms and the Careers of Young Workers," Bank of Lithuania Working Paper Series 113, Bank of Lithuania.
    5. Eslava, Francisco & Valencia Caicedo, Felipe, 2023. "Origins of Latin American inequality," LSE Research Online Documents on Economics 119763, London School of Economics and Political Science, LSE Library.
    6. Gáfaro, Margarita & Ibáñez, Ana María & Sánchez Ordóñez, Daniel & Ortiz, María Camila, 2023. "Farm size and income distribution of Latin American agriculture: new perspectives on an old issue," LSE Research Online Documents on Economics 120239, London School of Economics and Political Science, LSE Library.
    7. Boberg-Fazlić, Nina & Lampe, Markus & Martinelli Lasheras, Pablo & Sharp, Paul, 2022. "Winners and losers from agrarian reform: Evidence from Danish land inequality 1682–1895," Journal of Development Economics, Elsevier, vol. 155(C).
    8. Andrés Dean, 2023. "Membership Heterogeneity and Workplace democracy," Documentos de Trabajo (working papers) 23-19, Instituto de Economía - IECON.
    9. Laura Boudreau & Julia Cajal-Grossi & Rocco Macchiavello, 2023. "Global Value Chains in Developing Countries: A Relational Perspective from Coffee and Garments," Journal of Economic Perspectives, American Economic Association, vol. 37(3), pages 59-86, Summer.
    10. Naomi Crowther, 2022. "Returning to a Land of Opportunity? Effects of Land Restitution in Colombia," CSAE Working Paper Series 2022-13, Centre for the Study of African Economies, University of Oxford.

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