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Abstract

The paper analyses the effects of rural income determinants, in particular of human capital and physical capital. Besides the earnings equation estimated for persons occupied in agriculture, the paper also analyzes earnings regressions for persons occupied in the industry and service sectors. The results show that physical capital is the main determinant of earnings in Brazilian agriculture, but schooling is the most important determinant of earnings for persons occupied in rural non-farm activities and for all persons living in rural areas.

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