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Accounting For The Importance Of Nonfarm Income On Farm Family Income Inequality In New York

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  • Boisvert, Richard N.
  • Ranney, Christine K.

Abstract

As the proportion of farm family income due to nonfarm sources continues to grow nationally, it is important to understand how farm families in various regions or states are affected. This paper develops a better understanding of the contribution of income from nonfarm sources to the level and distribution of income among farm families in New York. In analyzing income distribution, the Gini ratio is decomposed to determine the effects of marginal changes in income by source to overall inequality. The results are compared with the simulated changes in income inequality due to changes in income by source as measured by an "adjusted" Gini ratio which accounts specifically for negative farm incomes. Differences in the policy implications from both procedures are compared. The relationships among sources of income and policy implications can be brought into sharper focus by examining both measures.

Suggested Citation

  • Boisvert, Richard N. & Ranney, Christine K., 1990. "Accounting For The Importance Of Nonfarm Income On Farm Family Income Inequality In New York," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(1), pages 1-11, April.
    • Handle: RePEc:ags:nejare:28965
    DOI: 10.22004/ag.econ.28965
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    Cited by:

    1. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 65, number 65.
    2. El-Osta, Hisham S. & Bernat, G. Andrew, Jr. & Ahearn, Mary Clare, 1995. "Regional Differences In The Contribution Of Off-Farm Work To Income Inequality," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-14, April.
    3. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
    4. El Benni, Nadja & Finger, Robert, 2013. "The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 638-651.
    5. Mishra, Ashok & El-Osta, Hisham & Gillespie, Jeffrey M., 2009. "Effect of agricultural policy on regional income inequality among farm households," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 325-340, May.
    6. El-Osta, Hisham S., 2015. "Assessing the Impact of Health Insurance and Other Socioeconomic Factors on Inequality in Health Care Expenditures among Farm Households," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-30, April.
    7. Boisvert, Richard N. & Ranney, Christine K., 1991. "The Budgetary Implications of Reducing U.S. Income Inequality Through Income Transfer Programs," Research Bulletins 123104, Cornell University, Department of Applied Economics and Management.
    8. Gundersen, Craig, 2002. "The Well-Being and the Decisions of Farm Households: The Uses of Cross-Country Comparisons," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13,2002, Wye Campus, Imperial College 15724, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    9. Severini, Simone & Tantari, Antonella, 2014. "The contribution of different off-farm income sources and government payments to regional income inequality among farm households in Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-17, August.

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