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

Joao Paulo A. de Souza

Structural Change and Economic Dynamics, 2024, vol. 71, issue C, 444-464

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.

Keywords: Rural employment; Land ownership and tenure; Technical change (search for similar items in EconPapers)
JEL-codes: O13 O54 Q15 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:71:y:2024:i:c:p:444-464

DOI: 10.1016/j.strueco.2024.07.010

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