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Cooperative Property Rights and Development: Evidence from Land Reform in El Salvador: A Comment

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  • Anders Kjelsrud

    (Oslo Business School, Oslo Metropolitan University)

  • Andreas Kotsadam

    (The Frisch Centre, Oslo/Norway)

  • Ole Rogeberg

    (The Frisch Centre, Oslo/Norway)

Abstract

Montero (2022) explores a discontinuity in a land reform in El Salvador and reports two main findings. First, relative to outside-owned haciendas operated by contract workers, the productivity of worker-owned cooperatives is higher for staple crops and lower for cash-crop. Second, cooperative property rights increase workers' incomes and compress wage distributions. In this comment, we show that the latter result rests on two mistakes: three-quarters of the observations are duplicates and income inequality is calculated over too few workers to be meaningful. When corrected, the data sources and research design provide no credible evidence regarding the causal effects of ownership structure on income levels and inequality.

Suggested Citation

  • Anders Kjelsrud & Andreas Kotsadam & Ole Rogeberg, 2023. "Cooperative Property Rights and Development: Evidence from Land Reform in El Salvador: A Comment," Working Papers 202301, Oslo Metropolitan University, Oslo Business School.
    • Handle: RePEc:oml:wpaper:202301
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    1. 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).
    2. 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.
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    Cited by:

    1. Guillaume Coqueret, 2023. "Forking paths in financial economics," Papers 2401.08606, arXiv.org.

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