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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.