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Locational Determinants of Rural Non-Agricultural Employment: Evidence from Brazil

Author

Listed:
  • Jonasson, Erik

    () (Department of Economics, Lund University)

  • Helfand, Steven

    (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.

Suggested Citation

  • Jonasson, Erik & Helfand, Steven, 2008. "Locational Determinants of Rural Non-Agricultural Employment: Evidence from Brazil," Working Papers 2008:3, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2008_003
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    References listed on IDEAS

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    1. Escobal, Javier, 2001. "The Determinants of Nonfarm Income Diversification in Rural Peru," World Development, Elsevier, vol. 29(3), pages 497-508, March.
    2. Graziano da Silva, Jose & Eduardo Del Grossi, Mauro, 2001. "Rural Nonfarm Employment and Incomes in Brazil: Patterns and Evolution," World Development, Elsevier, vol. 29(3), pages 443-453, March.
    3. Echeverría, Rubén G., 2000. "Options for rural poverty reduction in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    4. Alberto Isgut, 2004. "Non-farm Income and Employment in Rural Honduras: Assessing the Role of Locational Factors," Journal of Development Studies, Taylor & Francis Journals, vol. 40(3), pages 59-86.
    5. Sonia Laszlo, 2005. "Self-employment earnings and returns to education in rural Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1247-1287.
    6. Yang, Dennis Tao & An, Mark Yuying, 2002. "Human capital, entrepreneurship, and farm household earnings," Journal of Development Economics, Elsevier, vol. 68(1), pages 65-88, June.
    7. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    9. 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, vol. 26(4), pages 315-331, August.
    10. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
    11. 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.
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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    Cited by:

    1. Carsten Lohmann & Ingo Liefner, 2014. "Spatial Patterns of Private Sector and Public Sector Non-Agricultural Jobs in Rural Northeast Thailand," Regional Studies, Taylor & Francis Journals, vol. 48(4), pages 710-726, April.
    2. Radhika Lal & Waldemiro Francisco Sorte Junior, 2011. "Where Biodiversity, Traditional Knowledge, Health and Livelihoods Meet: Institutional Pillars for The Productive Inclusion of Local Communities (Brazil Case Study)," Working Papers 81, International Policy Centre for Inclusive Growth.
    3. repec:wbk:wbpubs:28971 is not listed on IDEAS

    More about this item

    Keywords

    rural non-agricultural employment; economic geography; Latin America; Brazil;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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