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Farm Size and Income Distribution of Latin American Agriculture New Perspectives on an Old Issue

Author

Listed:
  • Gáfaro, Margarita
  • Ibáñez, Ana María
  • Sánchez-Ordoñez, Daniel
  • Ortiz, María Camila

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 agri- cultural 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.

Suggested Citation

  • Gáfaro, Margarita & Ibáñez, Ana María & Sánchez-Ordoñez, Daniel & Ortiz, María Camila, 2023. "Farm Size and Income Distribution of Latin American Agriculture New Perspectives on an Old Issue," IDB Publications (Working Papers) 13078, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:13078
    DOI: http://dx.doi.org/10.18235/0005088
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    More about this item

    Keywords

    Land inequality; Productivity; Agricultural income;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • 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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