This article analyses differences in landownership between smallholder
s using survey data from sh villages in a land abundant region in Indo
nesia. Differences in landholdings are only partially explained by dif
ferences in labour availability. Landholdings are positively correlate
d with educational level, and early settlers have more land than late
settlers. The hypothesis is put forward that early settlers are wealth
ier and some empirical evidence is offered in support. Finally, the pa
per uses a conditional legit model of land purchases to test whether w
ealthier households are better able to purchase (additional) land. The
results support this hypothesis.