Publication: Labor Markets and Income Generation in Rural Argentina
Loading...
Published
2006-12
ISSN
Date
2012-06-26
Author(s)
Editor(s)
Abstract
This paper addresses three areas of the rural labor market-employment, labor wages, and agriculture producer incomes. Findings show that the poor allocate a lower share of their labor to farm sectors than the nonpoor do, but still around 70 percent work in agriculture, and the vast majority of rural workers are engaged in the informal sector. When examining nonfarm employment in rural Argentina, findings suggest that key determinants of access to employment and productivity in nonfarm activities are education, skills, land access, location, and gender. Employment analyses show that women have higher probability than men to participate in rural nonfarm activities and they are not confined to low-return employment. Moreover, workers living in poorer regions with land access are less likely to be employed in the nonfarm sector. There is strong evidence that educated people have better prospects in both the farm and nonfarm sectors, and that education is an important determinant of employment in the better-paid nonfarm activities. Labor wage analyses reveal that labor markets pay lower returns to poorer than to richer women and returns to education are increasing with increased level of completed education and income level. And nonfarm income and employment are highly correlated with gender, skills, household size, and education. This analysis also shows a rather heterogeneous impact pattern of individual characteristics across the income distribution, but education is important for all levels of income. Agricultural producer income analyses reveal that producers' income monotonically increases with land size and with completed education level, and positively correlates with road access and use of electricity, fertilizer, and irrigation. Finally, farms operated by women are slightly more productive than farms operated by men.
Link to Data Set
Citation
“Verner, Dorte. 2006. Labor Markets and Income Generation in Rural Argentina. Policy Research Working Paper; No. 4095. © World Bank. http://hdl.handle.net/10986/9284 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication Global Poverty Revisited Using 2021 PPPs and New Data on Consumption(Washington, DC: World Bank, 2025-06-05)Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.Publication The Economic Value of Weather Forecasts: A Quantitative Systematic Literature Review(Washington, DC: World Bank, 2025-09-10)This study systematically reviews the literature that quantifies the economic benefits of weather observations and forecasts in four weather-dependent economic sectors: agriculture, energy, transport, and disaster-risk management. The review covers 175 peer-reviewed journal articles and 15 policy reports. Findings show that the literature is concentrated in high-income countries and most studies use theoretical models, followed by observational and then experimental research designs. Forecast horizons studied, meteorological variables and services, and monetization techniques vary markedly by sector. Estimated benefits even within specific subsectors span several orders of magnitude and broad uncertainty ranges. An econometric meta-analysis suggests that theoretical studies and studies in richer countries tend to report significantly larger values. Barriers that hinder value realization are identified on both the provider and user sides, with inadequate relevance, weak dissemination, and limited ability to act recurring across sectors. Policy reports rely heavily on back-of-the-envelope or recursive benefit-transfer estimates, rather than on the methods and results of the peer-reviewed literature, revealing a science-to-policy gap. These findings suggest substantial socioeconomic potential of hydrometeorological services around the world, but also knowledge gaps that require more valuation studies focusing on low- and middle-income countries, addressing provider- and user-side barriers and employing rigorous empirical valuation methods to complement and validate theoretical models.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Stanley Fischer Memorial Lecture: Geopolitics and Development—The World Bank ABCDE Conference(Washington, DC: World Bank, 2025-10-01)This paper provides a sweeping historical overview of how geopolitics has shaped economic development and global institutions, culminating in a forward-looking analysis of challenges facing the world in 2025. The paper argues that understanding economic history and the political economy is essential for effective policy making, as geopolitics—encompassing power politics, geography, security, and ecology—fundamentally influences development economics. It traces the dynamic interplay between geopolitics and development across major historical periods: from the European Age of Discovery and the rise of nation-states, through the world wars and the Bretton Woods era, to the Cold War and the age of globalization. It highlights how crises and conflicts have repeatedly transformed global economic systems, spurring new ideas and institutions. Looking ahead, the paper identifies key trends for 2025—fragmented global governance amid ongoing globalization (migration, climate change, and debt), shifting security contexts with territorial disputes and nuclear risks, and the intersection of energy, climate, demographics, and migration with development—as it predicts increased economic nationalism and regionalization in finance and trade. The paper concludes by emphasizing the adaptive role of multilateral institutions like the World Bank and the International Monetary Fund, advocating for a holistic approach to development economics that integrates political and economic institutions, governance, and both macro and micro markets.Publication Gender Gaps in the Performance of Small Firms: Evidence from Urban Peru(Washington, DC: World Bank, 2025-09-23)This paper estimates the gender gap in the performance of firms in Peru using representative data on both formal and informal firms. On average, informal female-led firms have lower sales, labor productivity, and profits compared to their male-led counterparts, with differences more pronounced when controlling for observable determinants of firm performance. However, gender gaps are only significant at the bottom of the performance distribution of informal firms, and these gaps disappear at the top of the distribution of informal firms and for formal firms. Possible explanations for the performance gaps at the bottom of the distribution include the higher likelihood of small, female-led firms being home-based, which is linked to lower profits, and their concentration in less profitable sectors. The paper provides suggestive evidence that household responsibilities play a key role in explaining the gender gap in firm performance among informal firms. Therefore, policies that promote access to care services or foster a more equal distribution of household activities may reduce gender productivity gaps and allow for a more efficient allocation of resources.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Kyrgyz Republic : Poverty Assessment, Volume 1. Growth, Employment and Poverty(Washington, DC, 2007-10-19)This report, which has been prepared by the World Bank in cooperation with the National Statistical Committee, provides an assessment of poverty in the Kyrgyz Republic using the most recent data available. The objective of this report is to understand to what extent economic growth has reduced poverty and led to improved living conditions for the population during 2000-2005. The report also attempts to answer three questions about the Kyrgyz Republic: what is the profile of poor? How has economic growth affected the level and composition of poverty? How has the labor market contributed to changes in poverty? The report is divided into two volumes. The first volume begins with this chapter which provides an international comparison of social and other key indicators of the Kyrgyz Republic followed by a profile of the poor based upon 2005 household survey data. The second chapter analyzes the linkages between growth and poverty during 2000-2005. The third chapter provides our key findings of labor market outcomes and poverty and what the implications are for policy making. The final chapter synthesizes the information from the earlier chapters and provides some policy directions. The second volume provides a more thorough analysis of labor markets. It covers developments in the labor market, urban labor markets, rural labor markets and differences between men and women in the labor market.Publication Kyrgyz Republic : Poverty Assessment, Volume 2. Labor Market Dimensions of Poverty(Washington, DC, 2007-10-19)This report, which has been prepared by the World Bank in cooperation with the National Statistical Committee, provides an assessment of poverty in the Kyrgyz Republic using the most recent data available. The objective of this report is to understand to what extent economic growth has reduced poverty and led to improved living conditions for the population during 2000-2005. The report also attempts to answer three questions about the Kyrgyz Republic: what is the profile of poor? How has economic growth affected the level and composition of poverty? How has the labor market contributed to changes in poverty? The report is divided into two volumes. The first volume begins with this chapter which provides an international comparison of social and other key indicators of the Kyrgyz Republic followed by a profile of the poor based upon 2005 household survey data. The second chapter analyzes the linkages between growth and poverty during 2000-2005. The third chapter provides our key findings of labor market outcomes and poverty and what the implications are for policy making. The final chapter synthesizes the information from the earlier chapters and provides some policy directions. The second volume provides a more thorough analysis of labor markets. It covers developments in the labor market, urban labor markets, rural labor markets and differences between men and women in the labor market.Publication Liberia - Employment and Pro-Poor Growth(World Bank, 2010-11-29)Fourteen years of civil conflict (1989-2003) have destroyed Liberia's social and economic infrastructure and brought the economy nearly to a halt. Workers who came of age during the conflict are largely unskilled, and the supply of workers exceeds demand by a substantial margin. The negative effects of unemployment, underemployment, and low productivity on economic growth have made employment the most urgent demand of the population and the top priority for Government action. This report offers guidance to the Government of Liberia in its development of a more strategic approach toward increasing productivity and employment, in order to achieve its pro-poor growth objectives. This report includes seven sections: employment is key for poverty reduction; one in five workers is unemployed or underemployed; the structure of Liberia's economy limits prospects for formal sector employment; transformation of the agriculture sector is essential for pro-poor growth; investment and job growth in the formal sector are constrained by three main factors; labor-intensive public works programs are necessary for the very poor; and education and training must be improved to enhance employability.Publication Armenia : Poverty Assessment, Volume 2. Main Report(Washington, DC, 2003-11)This report reviews poverty in Armenia in 2001, and examines the most recent trends covering the 1998/99 to 2001 period. It looks at the determinants of poverty, and analyzes linkages between economic growth, sector policies and poverty. The findings are based on two rounds of the Armenia Integrated Living Conditions Survey (ILCS), one carried out in 1998/99, and the other in 2001. The report has contributed to the development of Armenia's national strategy for growth and poverty reduction. Poverty is high in Armenia, with an estimated 48 percent of the population below the poverty line in 2001. Despite some 20 percent still living in extreme poverty, there has been nonetheless, a significant decline in poverty, as poverty incidence dropped by 12 percent, and extreme poverty incidence by 25 percent from their respective levels in 1998/99. There is a strong correlation between poverty and low educational attainment, while the unemployed and non-participants in the labor market, face the highest poverty risk, depth and severity of poverty. In rural areas, poverty is positively correlated with the size of landholdings. The drop in poverty reflects a decline in urban poverty since 1998/99. Rural poverty has increased slightly. Yerevan, the capital and largest urban area in Armenia, registered the most significant reduction in poverty, as poverty incidence there dropped by 23 percent and extreme poverty by over a third, to 45 percent and 20 percent, respectively. While poverty in other urban areas also decreased, their poverty incidence still remains above the national rate, at 52 percent. Poverty incidence is now roughly the same in urban and rural areas, 48.5 percent and 47.9 percent, respectively. Government policies aimed at macroeconomic stability and diversification of the economy should be pursued, and, recommendations further include increasing the level and quality of education, and ensuring better health for all, critical to reduce poverty. Concerning social protection, consideration should be given to expanding it to cover most of the extremely poor, as well as refining targeting mechanisms.Publication Romania : Diagnostic Review of Consumer Protection and Financial Literacy, Volume 1. Key Finding and Recommendations(Washington, DC, 2009-07)The diagnostic review on consumer protection and financial literacy in Romania is the fourth in a World Bank-sponsored pilot program to assess consumer protection and financial literacy in developing and middle-income countries. The objective of this review are three-fold to: (1) refine a set of good practices for assessing consumer protection and financial literacy, including financial literacy; (2) conduct a review of the existing rules and practices in Romania compared to the good practices; and (3) provide recommendations on ways to improve consumer protection and financial literacy in Romania. The diagnostic review was prepared at the request of National Authority for Consumers Protection (ANPC), whose request was endorsed by the Ministry of Economy and Finance. Support was provided by the National Bank of Romania (BNR), which supervises banks and non-bank credit institutions. Further assistance was given by supervisory commissions for securities (CNVM), insurance (CSA) and private pensions (CSSPP). Volume one notes the importance of consumer protection and finical literacy, provides statistics on the size and growth of the retail financial sector in Romania, describes the EU and Romanian strategies on consumer protection and financial literacy, and sets out the key finding and recommendations of the review. Annex one lists all recommendation in the diagnostic review from both volumes and notes which recommendations relate to European Union (EU) Directives or European Commission (EC) recommendations and which are taken from the good practices annex two provides two sample consumer protection code: one for the banking securities, insurance and pensions sectors; and another for non-bank credit institutions. Annex three lists the key lawn and institutions related to financial consumer protection in Romania and annex four indicates which Romanian laws have incorporated the EU Directives on financial consumer protection. Volume two provides: (1) a detailed analysis of the key consumer protection issues in five segments of financial sector - banking, securities, insurance, private pensions, and non-bank credit intuitions; (2) an assessment of the Romanian consumer protection framework and practices compared to the template of good practices; and (4) a brief survey of financial literacy programs worldwide.
Users also downloaded
Showing related downloaded files
Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.