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Modernization and underemployment in a dual agrarian sector: The case of Brazil (1950–1980)

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  • de Souza, Joao Paulo A.

Abstract

This paper presents a case study of employment trends in Brazilian agriculture between 1950 and 1980. Using primary data, I document the displacement of workers from large and mid-sized establishments and the expansion of self-employment in an increasingly fragmented smallholding sector. I compute novel measures of rural population and find significant corresponding trends in employment-to-population ratios, thus contributing new evidence of the persistence of rural underemployment in a period of fast industrialization and growth. I conclude by examining the main rural development policies adopted in the period within a coherent framework for understanding the adoption of technical innovations. I argue, in particular, that the State concentrated price and credit subsidies on large and mid-sized producers and neglected investments in research, extension, and rural infrastructure. This policy mix interacted with Brazil’s dual agrarian structure and enhanced the incentives for the adoption of labor-saving innovations.

Suggested Citation

  • de Souza, Joao Paulo A., 2024. "Modernization and underemployment in a dual agrarian sector: The case of Brazil (1950–1980)," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 444-464.
    • Handle: RePEc:eee:streco:v:71:y:2024:i:c:p:444-464
    DOI: 10.1016/j.strueco.2024.07.010
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    More about this item

    Keywords

    Rural employment; Land ownership and tenure; Technical change;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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