Farm size and income distribution of Latin American agriculture: new perspectives on an old issue

Gáfaro, Margarita, Ibáñez, Ana María, Sánchez Ordóñez, Daniel and Ortiz, María Camila (2023) Farm size and income distribution of Latin American agriculture: new perspectives on an old issue. III Working Papers (105). International Inequalities Institute, London School of Economics and Political Science, London, UK.

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Abstract

Latin American and Caribbean countries have historically been known for their rates of land inequality, highest in the world. However, these countries also exhibit a high degree of heterogeneity in their patterns of land concentration and average farm sizes. These cross-country differences play a determining role in productivity of farms and the distribution of agricultural income. Constructing a new data-set matching agricultural census and household survey data, we provide suggestive evidence on the positive relationship between farm size and farm income and wages. We identify the prevalence of small farms and the resulting low agricultural incomes as an important mechanism contributing to high income inequality in agricultural regions. Low labor productivity in small farms appears as a key explanatory factor.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/International-Inequalities/P...
Additional Information:	© 2023 The Author(s)
Divisions:	International Inequalities Institute
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor S Agriculture > S Agriculture (General)
JEL classification:	Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Date Deposited:	19 Sep 2023 08:51
Last Modified:	11 Dec 2024 19:49
URI:	http://eprints.lse.ac.uk/id/eprint/120239

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