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Land Ownership Inequality and the Income Distribution Consequences of Economic Growth

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  • Carter, Michael R.

Abstract

While unequal land ownership has a role to play in explaining historically high levels of income inequality, this paper asks what role agrarian structure plays in explaining contemporary trends of increasing income inequality. Using a Gini decomposition framework to structure the analysis and drawing on a variety of theoretical historical and econometric evidence, the paper identifies four linkages or pathways between agrarian structure and income inequality. Panel data estimates of a mixed effects model of income inequality find significant evidence of the 'self-dampening level' and 'legacy effects' of agrarian structure on income inequality. Weaker but provocative evidence is found supporting the notion that agrarian structure conditions the income distribution consequences of contemporary growth through 'exclusionary agrarian growth' and 'unequal human capital accumulation' effects. The paper concludes by noting that, while agrarian asset redistribution is one implication of the paper's findings concerning the linkages between agrarian structure and inequality, another is that policy can attempt to redress the financial market imperfections which seem to underlie the linkages between agrarian structure and the evolution of income inequality.

Suggested Citation

  • Carter, Michael R., 2000. "Land Ownership Inequality and the Income Distribution Consequences of Economic Growth," WIDER Working Papers 295533, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:ags:widerw:295533
    DOI: 10.22004/ag.econ.295533
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    Cited by:

    1. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
    2. Hichaambwa, Munguzwe & Chamberlin, Chamberlin & Kabwe, Stephen, 2015. "Is Smallholder Horticulture the Unfunded Poverty Reduction Option in Zambia? A Comparative Assessment of Welfare Effects of Participation in Horticultural and Maize Markets," Food Security Collaborative Working Papers 207022, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
    4. Daranrat Jaitiang & Wen-Chi Huang & Shang-Ho Yang, 2021. "Does Income Inequality Exist among Urban Farmers? A Demonstration of Lorenz Curves from Northern Thailand," Sustainability, MDPI, vol. 13(9), pages 1-16, May.
    5. Joachim Von Braun, 2005. "Agricultural economics and distributional effects," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 1-20, January.
    6. Oyvat, Cem, 2016. "Agrarian Structures, Urbanization, and Inequality," World Development, Elsevier, vol. 83(C), pages 207-230.
    7. Ricardo Fort, 2007. "Land inequality and economic growth: a dynamic panel data approach," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 159-165, September.
    8. Martinelli, Pablo, 2014. "Latifundia revisited: Market power, land inequality and agricultural efficiency. Evidence from interwar Italian agriculture," Explorations in Economic History, Elsevier, vol. 54(C), pages 79-106.
    9. Hichaambwa, Munguzwe & Jayne, T. S., 2014. "Poverty Reduction Potential of Increasing Smallholder Access to Land," Food Security Collaborative Working Papers 171873, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Rhoda Mofya-Mukuka & Munguzwe Hichaambwa, 2018. "Livelihood effects of crop diversification: a panel data analysis of rural farm households in Zambia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(6), pages 1449-1462, December.
    11. Melanie Hultsch, 2014. "How to Generate and Sustain the Highest Income Inequality in Latin America – the Case of Colombia 2000-2010," Competence Centre on Money, Trade, Finance and Development 1403, Hochschule fuer Technik und Wirtschaft, Berlin.
    12. Marc C. A. Wegerif & Arantxa Guereña, 2020. "Land Inequality Trends and Drivers," Land, MDPI, vol. 9(4), pages 1-23, March.
    13. Hossein Azadi & Eric Vanhaute, 2019. "Mutual Effects of Land Distribution and Economic Development: Evidence from Asia, Africa, and Latin America," Land, MDPI, vol. 8(6), pages 1-15, June.
    14. Abubakar, Ismaila Rimi, 2021. "Predictors of inequalities in land ownership among Nigerian households: Implications for sustainable development," Land Use Policy, Elsevier, vol. 101(C).
    15. Maria Cipollina & Nadia Cuffaro & Giovanna D’Agostino, 2018. "Land Inequality and Economic Growth: A Meta-Analysis," Sustainability, MDPI, vol. 10(12), pages 1-20, December.

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