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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. Rocco Macchiavello, 2022. "Relational Contracts and Development," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 337-362, August.
    4. Abel, Martin & Burger, Rulof, 2022. "Choice over Payment Schemes and Worker Effort," IZA Discussion Papers 15769, Institute of Labor Economics (IZA).
    5. 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.
    6. Eslava Saenz, Francisco & Valencia Caicedo, Felipe, 2023. "Origins of Latin American Inequality," CEPR Discussion Papers 18263, C.E.P.R. Discussion Papers.
    7. 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.
    8. 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).
    9. Angelo D’Andrea & Patrick Hitayezu & Mr. Kangni R Kpodar & Nicola Limodio & Mr. Andrea F Presbitero, 2024. "Mobile Internet, Collateral, and Banking," IMF Working Papers 2024/070, International Monetary Fund.
    10. Galán, Juan Sebastián, 2024. "Crown Versus Settler Colonialism in Mexico," Documentos CEDE 21268, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Andrés Dean, 2023. "Membership Heterogeneity and Workplace democracy," Documentos de Trabajo (working papers) 23-19, Instituto de Economía - IECON.
    12. Casaburi, Lorenzo & Caprettini, Bruno & Venturini, Miriam, 2021. "Redistribution, Voting and Clientelism: Evidence from the Italian Land Reform," CEPR Discussion Papers 15679, C.E.P.R. Discussion Papers.
    13. 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.
    14. 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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