**Table 12.** Relationship between agriculture area share by crop type and poverty

|Agriculture area with agriculture type:|(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|(10)|(11)|
|---|---|---|---|---|---|---|---|---|---|---|---|
|LABELS|Poverty rate|Poverty rate|Poverty rate|Poverty rate|Poverty rate|Poverty rate|Poverty rate|Poverty rate|Poverty rate|Poverty rate|<br>Poverty rate|
|Specialist horticulture - indoor|0.000548*|||||||||||
|Specialist horticulture - outdoor||0.000202**||||||||||
|Specialist vineyards|||3.07e-05**|||||||||
|Various permanent crops combined||||0.000188+||||||||
|Specialist dairying|||||-2.08e-05**|||||||
|Cattle-dairying, rearing and fattening combined||||||-6.62e-05**||||||
|Specialists pigs|||||||-1.07e-05*|||||
|Various granivores combined||||||||0.000168**||||
|Mixed cropping|||||||||6.65e-05**|||
|Mixed livestock, mainly grazing livestock||||||||||7.41e-05*||
|Various crops and livestock combined|||||||||||5.02e-05*|
|Total utilised agricultural area|2.48e-06+|2.44e-06*|2.22e-06*|1.80e-06*|5.79e-06**|3.62e-06**|2.60e-06+|2.07e-06|1.77e-06**|2.93e-07|-7.74e-08|
|Population density(Inhabitants per hectare);|0.0987*|0.0959*|0.107*|0.106*|0.100*|0.108*|0.103*|0.0953*|0.0979*|0.0966*|0.0905*|
|Gross Domestic Product(PPS per inhabitant)|-0.000148*|-0.000143+|-0.000154*|-0.000153*|-0.000142+|-0.000152+|-0.000153*|-0.000147+|-0.000150*|-0.000149*|-0.000147*|
|Poverty line|-0.000356*|-0.000431*|-0.000402*|-0.000435*|-0.000385*|-0.000351*|-0.000408*|-0.000327+|-0.000401*|-0.000436+|-0.000389+|
|Dummy: agricultural data zero|1.674*|2.265+|0.740|0.494|0.624|-0.167|0.563|1.777**|1.331+|0.787|1.356|
|Dummy: data at NUTS 2 level|-0.287|0.683|-0.774+|-0.428|0.309|-0.681+|-0.490|-0.657|-0.283|-0.711|-0.893+|
|Constant|22.56**|22.23**|23.49**|24.23**|23.38**|23.61**|23.96**|21.69**|23.33**|24.42**|23.64**|
|Interaction termms with countries|N|N|N|N|N|N|N|N|N|N|N|
|Country fixed effects|Y|Y|Y|Y|Y|Y|Y|Y|Y|Y|Y|
|Observations|1,205|1,205|1,205|1,205|1,205|1,205|1,205|1,205|1,205|1,205|1,205|
|Adj R-squared|0.376|0.376|0.369|0.376|0.391|0.377|0.368|0.376|0.376|0.372|0.373|
|<br>Note: (1) Data source: EU 2011 Poverty Map (DG-REGIO<br>observations in agricultural indicators are treated as zero;|and World Bank), 201<br>(4) Luxembourg and C|0 Farm Structu<br>yprus Republ|re Survey (Eur<br>ic are not bein|ostat), and EU<br>g analyzed her|National Statis<br>e|tic Institutes (E|urostat); (2) Sy|mbols: ** p<0|.01, * p<0.05,|+ p<0.1; (3) M|issing|

In terms of poverty dynamics, we identified several strategies that have an impact on poverty over time. Table 13 below summarizes two important results. First, that there is a positive association between the poverty rate and the share of individuals who live in an agricultural household through time. Thus, an increase in the share of individuals in agricultural households was associated with an increase in poverty through time. On the other hand, household diversification is negatively associated with the poverty rate through time. Suggesting that as diversification of the income sources at the household level increases, poverty decreases. Households that have more diverse sources of income, in terms of agricultural and non‐agricultural income, are associated with a lower poverty rate. This means that households who diversify seem to do better than those who rely only on agriculture. Thus, agricultural households could benefit from diversifying their income by complementing it with non‐agricultural sources. However, it is important to note that this result relies on well‐functioning labor markets, especially labor in the non‐agricultural sectors, that can provide real alternative sources of income to members of agricultural households.

**Table 13.** Regions with higher household diversification have greater poverty reduction

|LABELS|(1)<br>Povertyrate|(2)<br>Povertyrate|(3)<br>Povertyrate|(4)<br>Povertyrate|
|---|---|---|---|---|
|Share of individuals living in agriculture households|0.66*|0.24*|0.60*|0.42*|
|Household diversification index|-1.75*||-1.07+|-0.29|
|GDP per inhabitant||-10.57*|-10.13*|-8.46*|
|Share of inhabitants with secondary education||0.16+|0.15|0.04|
|Share of inhabitants with tertiary education||-0.06|-0.06|-0.10|
|Unemployment rate||||0.34+|
|R-Squared:|||||
|Within|0.33|0.49|0.50|0.54|
|Between|0.21|0.14|0.16|0.24|
|Overall|0.25|0.14|0.16|0.24|
|Observations|959|959|959|959|

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