Public Services and Rural Poverty Mitigation in Brazil

Abstract

The objective of this study was to adjust hedonic regression models capable of explaining rental values of rural households according to their attributes, including the availability of public services. The results showed that the availability of public services increased in the higher income classes. Non-monetary income generated by basic services was estimated at approximately R$ 90 million per month. Simulations performed with these results indicated that extending basic services - electricity, running water and adequate sewage - to all rural households, the additional non-monetary income would be enough to remove between 245 to 280 thousand people from extreme poverty, and bring between 221 and 269 thousand people above poverty line.

Keywords

• Public services
• Rural poverty
• Non-monet ary income
• Hedonic models.