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Poverty, Structural Transformation, and Land Use in El Salvador: Learning from Household Panel Data
Author(s) -
GonzálezVega Claudio,
RodríguezMeza Jorge,
Southgate Douglas,
Maldonado Jorge H.
Publication year - 2004
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.0002-9092.2004.00691.x
Subject(s) - poverty , state (computer science) , political science , general partnership , agriculture , land grant , management , library science , geography , economic growth , economics , public administration , archaeology , law , algorithm , computer science
Using data collected in four biennial surveys of a nationally representative sample of rural households in El Salvador, we examine trends in structural transformation and living standards. Per capita income grows the fastest for households that diversify away from agriculture. To analyze factors influencing this diversification, a multinomial probit model is estimated. In addition, we find farmed area increasing even for households experiencing a rise in non-agricultural earnings. This suggests that a precautionary demand for resources suitable for subsistence farming remains strong in places like the Salvadoran countryside, in spite of non-agricultural growth and improved living standards.