DP5184 Land Reforms and Economic Development

Author(s): Hans Gersbach, Lars Siemers
Publication Date: August 2005
Keyword(s): land market access, land reforms, migration, poverty, transition
JEL(s): I28, I38, O11, O15, Q15
Programme Areas: Institutions and Economic Performance
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=5184

We demonstrate that there is a nexus between land transfers and human capital formation. A sequence of land redistributions enables the beneficiaries to educate their children and thus to escape from poverty and to overcome child labour. We find that open access to land markets should be prohibited for beneficiaries for some time. Moreover, a temporary state of inequality among the poor is unavoidable. Finally, a successful land reform allows for the transition of a society from an agriculture-based state of poverty to a human capital-based developed economy.