Effects of pluriactivity and non-farming income on poverty and inequality in the Brazilian Northeast / Efeitos da pluriatividade e rendas não-agrícolas sobre a pobreza e desigualdade rural na região Nordeste

AUTOR(ES)
DATA DE PUBLICAÇÃO

2008

RESUMO

Many rural family households in the Brazilian Northeast have at least a member involved in non-farming activities. However, this region also concentrates the highest percentage of poor families. Poverty is reflected by social indicators such as higher infant mortality rate between the Brazilian regions, lower life expectancy at birth and higher illiteracy rate. Thus, development of the northeastern rural conditions must be a fundamental part of a national development strategy. Considering that several research and funding agencies have regarded stimulus to non-farming activities as a tool to improve the living conditions of rural families, this work aims to analyze the effects of pluriactivity and non-farming income on poverty and inequality in the Brazilian Northeast. The theoretical referential is related to rural labor offer, focusing on the likelihood of the family household members to apply to multiple sources of employment. Based on this approach, the family compares the work options, allocating their total available time so as to maximize their utility function. The selection bias correction based on the multinomial logit model was applied to analyze the determinants of the familys choices from the types of jobs available as well as to estimate the mean income, considering the possibility of sample selection bias. Based on the estimated incomes, simulations are made aiming at predicting the farming familys income in the case of a pluriactive or non- farming family; the pluriactive familys income in case it became exclusively agricultural or non-farming; and, finally, the non-farming familys income, if it became a agricultural or pluriactive family. Based on the observed and estimated incomes, the FGT (Foster-Greer- Thorbecke) poverty index, the Gini income concentration index and the growthincome and Gini poverty elasticities are calculated. The data source is Pnad of 2003 and 2005, aiming at capturing differences in the results, considering a year without and another with regular rainfall. Regardless of the climatic conditions, job determinants, such as years of schooling, number of family members, autonomous or employed type of worker, and being a resident in the state of Piauí increase the chance of the family household being pluriactive. Residing in the rural area farther from the urban area, having a higher dependence and being a resident in the states of Alagoas, Sergipe or Bahia, decrease this chance. The first simulation carried out considering all the family households as farming or as pluriactive indicated that the non-farming activity is important to reduce poverty and income concentration. The results obtained in a posterior simulation, considering the different types of family, showed that non-farming job is important to reduce poverty. With regard to income concentration, inequality does not decrease if the agricultural family becomes pluriactive. The farming part of the income is so concentrated that the non-farming increase has no effect on the reduction of the disparities. As for the states of Maranhão, Piauí and Rio Grande do Norte, which are more inclined to non-farming activities, the results confirm the positive effect of this tendency on poverty reduction and show that the non-farming incomes can also contribute to reduce income concentration. The effect is not as strong as on poverty reduction, but can be used in combination with specific tools aiming at reducing income concentration in the region. The analysis of elasticities shows that the income growth of the pluriactive family households has a greater effect on poverty reduction, compared to the agricultural family households, with inequality reduction being a rather relevant factor in helping families move up the poverty line. The conclusion is that the pluriactivity and the non-agricultural incomes are important to reduce the poverty and the concentration in the rural of Brazilian Northeast, confirming the hypotheses tested in the research.

ASSUNTO(S)

pobreza inequality pluriactivity desigualdade nordeste poverty pluriatividade brazilian northeast metodos quantitativos em economia

ACESSO AO ARTIGO

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