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

Anders Kjelsrud, Andreas Kotsadam and Ole Rogeberg
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Ole Rogeberg: The Frisch Centre, Oslo/Norway

Working Papers from Oslo Metropolitan University, Oslo Business School

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.

Date: 2023-03-10
New Economics Papers: this item is included in nep-dev and nep-hme
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Journal Article: Cooperative Property Rights and Development: Evidence from Land Reform in El Salvador: A Comment (2023) Downloads
Working Paper: Cooperative Property Rights and Development: Evidence from Land Reform in El Salvador: A Comment (2023) Downloads
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