Rural Development Planning and Labour Absorption: O'Higgins and Colchagua Provinces, Central Chile

Abstract

<p> During the last several decades, Chile has experienced development characterized by rapid social and economic changes. In conjunction with economic growth, Chile has experienced rural stagnation, a growing dependence on imported foodstuffs and a migration of rural population to the urban centres. Unemployment and underemployment exist in both the rural and urban sectors.</p> <p> Economic planning in Chile must be directed in part to improving agricultural production, reducing the dependence on imported foodstuffs, and creating more employment opportunities in the rural sector.</p> <p> In this paper, the Chilean provinces of O'Higgins and Colchagua are examined with regard to the determinants of labour demand. A measure of rural unemployment (CH), calculated for thirty-two townships is analysed and evaluated as a planning tool. Variations in the demand for labour and the estimated levels of unemployment (CĤ) are analysed with reference to the physiographic characteristics of the townships, land use, and the system of land tenure.</p> <p> It was found that spatial distribution of the supply of labour is a function of the location of labour demand and that surplus labour tends to move toward the minifundios and the urban areas. Land use and the choice of technique appear to be strongly influenced by land tenure and access to markets in addition to being determined by land capability. The paper concludes with a discussion of the planning and policy implications of the study.</p>