Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-15T23:34:35.076Z Has data issue: false hasContentIssue false
  • English
  • Français

Regional Differences in the Contribution of Off-Farm Work to Income Inequality

Published online by Cambridge University Press:  15 September 2016

Hisham S. El-Osta ,
G. Andrew Bernat Jr.  and
Mary C. Ahearn
Hisham S. El-Osta
Affiliation:
Economic Research Service, United States Department of Agriculture, Washington, DC.
G. Andrew Bernat Jr.
Affiliation:
Economic Research Service, United States Department of Agriculture, Washington, DC.
Mary C. Ahearn
Affiliation:
Economic Research Service, United States Department of Agriculture, Washington, DC.
Get access

Abstract

This paper uses the concept of the Gini Coefficient and data from the 1991 Farm Costs and Returns Survey (FCRS) to measure the role of off-farm income and that of other income sources in the size distribution of farm operator households' total personal income. Disaggregated FCRS data by region and by level of participation in off-farm employment show that nonparticipating farm operator households have, as a group, higher income inequality than participating households. The results also indicate that, irrespective of the off-farm work status of the farm operator household, the distribution of income among households in the North Central region is least unequal and that in the West is most unequal.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 24 , Issue 1 , April 1995 , pp. 1 - 14
Copyright
Copyright © 1995 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ahearn, Mary, Johnson, Jim, and Strickland, Roger “The Distribution of Income and Wealth of Farm Operator Households.” American Journal of Agricultural Economics 67 (1985): 1087–94.Google Scholar
Ahearn, Mary C., Perry, Janet E., and El-Osta, Hisham S. The Economic Well-Being of Farm Operator Households, 1988–90. Agricultural Economics Report No. 666, U.S. Department of Agriculture, January 1993.Google Scholar
Al-Sammarrie, Ahmad and Miller, Herman P. “State Differentials in Income Concentration.” American Economic Review LVII,(67): 59–72.Google Scholar
Benson, Richard A. “Gini Ratios: Some Considerations Affecting Their Interpretation.” American Journal of Agricultural Economics 52 (1970): 444–7.CrossRefGoogle Scholar
Berrebi, Z.M. and Silber, Jacques “The Gini Coefficient and Negative Income: A Comment.” Oxford Economic Papers 37 (1985): 525–6.Google Scholar
Boisvert, Richard N. and Ranney, Christine “Accounting for the Importance of Nonfarm Income on Farm Family Income Inequality in New York.” Northeastern Journal of Agricultural Economics 19 (1990): 1–11.Google Scholar
Carlin, Thomas A. and Reinsel, Edward I. “Toward a More Complete Comparison of Farm and Nonfarm Proprietorship Income.” Southern Journal of Agricultural Economics 4 (1972): 157–63.Google Scholar
Chen, C., Tsaur, T., and Rhai, T. “The Gini Coefficient and Negative Income.” Oxford Economic Papers 34 (1982): 473–8.CrossRefGoogle Scholar
Chiswick, Barry R. “The Average Level of Schooling and the Intra-Regional Inequality of Income: A Clarification.” American Economic Review LVIII (1968): 495–500.Google Scholar
Dillard, Dave. Answers To Common Questions About The New Summary For The Farm Costs and Returns Survey. U.S. Department of Agriculture, National Agriculture Statistics Service, SMB Staff Report No. SMB-93-04. June, 1993.Google Scholar
Findeis, Jill L. and Reddy, Venkateshwar K. “Decomposition of Income Distribution Among Farm Families.” Northeastern Journal of Agricultural Economics 16 (1987): 165–73.Google Scholar
Foster, James E. “An Axiomatic Characterization of the Theil Measure of Income Inequality.” Journal of Economic Theory 31 (1983): 105–21.Google Scholar
Gardner, Bruce L. “Determinants of Farm Family Income Inequality.” American Journal of Agricultural Economics 51 (1969): 753–69.CrossRefGoogle Scholar
Glasser, Gerald J. “Variance Formulas for the Mean Difference and Coefficient of Concentration.” American Statistical Association Journal 57 (1962): 648–54.Google Scholar
Gould, Brian W. and Saupe, William E. “Changes in the Distribution of Income and Wealth of Farm Households: Evidence From Wisconsin Panel Data.” North Central Journal of Agriculatural Economics 12 (1990): 31–46.Google Scholar
Gunter, Lewell and McNamara, Kevin T. “The Impact of Local Labor Market Conditions on the Off-Farm Earnings of Farm Operators.” Southern Journal of Agricultural Economics 22 (1990): 155–65.Google Scholar
Hallberg, M.C., Findeis, Jill L., and Lass, Daniel A. (Editors). Multiple Job-Holding Among Farm Families. Iowa State University Press, Ames, 1991.Google Scholar
Kinsey, Jean. “Measuring the Well-Being of Farm Households: Farm, Off-Farm, and In-Kind Sources of Income: Discussion.” American Journal of Agricultural Economics 67 (1985): 1105–7.Google Scholar
Larson, Donald K. and Carlin, Thomas A. “Income and Economic Status of People with Farm Earnings.” Southern Journal of Agricultural Economics 6 (1974): 73–9.Google Scholar
Lerman, Robert I. and Yitzhaki, Shlomo. “Income Inequality Effects by Income Source: A New Approach and Applications to the United States.” Review of Economics and Statistics LXVII (1985): 151–7.Google Scholar
Lerman, Robert I. and Yitzhaki, Shlomo. “Improving The Accuracy of Estimates of Gini Coefficients.” Journal of Econometrics 42 (1989): 43–7.Google Scholar
Levitan, Sar A. Programs in Aid of the Poor. Sixth Edition. The Johns Hopkins University Press, Baltimore, Maryland, 1991.Google Scholar
Mincer, Jacob. “Investment in Human Capital and the Personal Distribution of Income.” Journal of Political Economics 66 (1958): 281–302.Google Scholar
National Agricultural Statistics Service. Interviewer's Manual-1991 Farm Costs and Returns Survey (FCRS). U.S. Department of Agriculture, Washington, DC, 1991.Google Scholar
Pyatt, G., Chen, C., and Fei, J. “The Distribution of Income by Factor Components.” Quarterly Journal of Economics XCV (1980): 451–73.Google Scholar
Reddy, V.K., Findeis, J.L., and Hallberg, M.C. Determinants of Off-Farm Labor Participation and Impacts on Income Distribution Among U.S. Farm Families. Pennsylvania State University, University Park, Agricultural Experiment Station. Bulletin 686. Dec. 1988.CrossRefGoogle Scholar
Rice, G. Randolph and Sale, Tom S. III. “Size Distribution of Income in Louisiana and Other Southern States.” Growth and Change 16 (1975): 26–32.CrossRefGoogle Scholar
Schneeberger, K.C. and West, J.G. “Marginal Farms—A Micro Development Opportunity.” Southern Journal of Agricultural Economics 4 (1972): 97–100.Google Scholar
Schultz, T. Paul. “Long-Term Changes in Personal Income Distribution: Theoretical Approaches, Evidence, and Explanation.” American Economic Review Papers and Proceedings of the Eighty-fourth Annual Meeting, (New Orleans, Louisiana, December, 27–29, 1971), May 1972.Google Scholar
Shah, Anup. “Education and Earnings Inequality Across British Labour Markets.” Applied Economics 18 (1986): 205–17.CrossRefGoogle Scholar
Shorrocks, Anthony F. “Inequality Decomposition By Factor Components.” Econometrica 50 (1982): 193–211.Google Scholar
Shorrocks, Anthony F. “The Impact of Income Components on the Distribution of Family Incomes.” Quarterly Journal of Economics XCVIII (1983): 311–26.Google Scholar
Slottje, Daniel J. and Hayes, Kathy J. “Labour Force Participation, Race and Human Capital: Influence on Earnings Distributions Across States.” Review of Income and Wealth Series 38 (1992): 27–37.Google Scholar
Sumner, Daniel A. “The Off-Farm Labor Supply of Farmers.” American Journal of Agricultural Economics 64 (1982): 499–509.CrossRefGoogle Scholar
U.S. Department of Agriculture. National Agricultural Statistics Service and Economic Research Service. Farm Costs and Returns Survey, 1991.Google Scholar
U.S. Department of Commerce. U.S. Census of Population—1960. Industrial Characteristics. PC (2)-7F. Bureau of the Census.Google Scholar