Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2008:3: Locational Determinants of Rural Non-Agricultural Employment: Evidence from Brazil

Erik Jonasson () and Steven Helfand
Additional contact information
Erik Jonasson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Steven Helfand: University of California, Riverside, Postal: Department of Economics, University of California, Riverside, CA 92521 , USA

Abstract: By paying particular attention to the local economic context, this paper analyzes the determinants of non-agricultural employment and earnings in non-agricultural jobs. The empirical analysis is based on the Brazilian Demographic Census, allowing for disaggregated controls for the local economy. Education stands out as one of the key determinants of employment outcome and earnings potential. Failure to control for locational effects, however, can lead to biased estimation of the importance of individual and household-specific characteristics. The empirical results show that local market size and distance to population centers have a significant impact on non-agricultural employment prospects and earnings.

Keywords: rural non-agricultural employment; economic geography; Latin America; Brazil

JEL-codes: J31; O12; O15; O18

33 pages, January 17, 2008

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