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Distributional effects of direct payments in Switzerland

Author

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  • El Benni, Nadja
  • Mann, Stefan
  • Lehmann, Bernard

Abstract

The switch from market-support to direct payments in Switzerland had impacts on the income distribution among farmers. In this paper, the distributional effect of the switch as a whole and of the different kinds of direct payments are elaborated through a presentation of different decomposed Gini coefficients. Although the income distribution in Swiss Agriculture is still more equal than in most other countries, the Gini coefficient has risen from 0.27 in 1990 to 0.38 in 2009 and is by now strongly dependent on the composition of direct payments. Off-farm income and direct payments decrease, while market income increases income inequality.

Suggested Citation

  • El Benni, Nadja & Mann, Stefan & Lehmann, Bernard, 2011. "Distributional effects of direct payments in Switzerland," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99368, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa122:99368
    DOI: 10.22004/ag.econ.99368
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    File URL: https://ageconsearch.umn.edu/record/99368/files/elbennimannlehmann.pdf
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    References listed on IDEAS

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    1. Van de Ven, J., 2001. "Distributional Limits and GINI Coefficient," Department of Economics - Working Papers Series 776, The University of Melbourne.
    2. von Witzke, Harald & Noleppa, Steffen, 2007. "Agricultural and Trade Policy Reform and Inequality: The Distributive Effects of Direct Payments to German Farmers under the EU's New Common Agricultural Policy," Working Paper Series 10289, Humboldt University Berlin, Department of Agricultural Economics.
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    1. Paying farmers for landscaping
      by Economic Logician in Economic Logic on 2011-04-07 19:00:00

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    Cited by:

    1. El Benni, Nadja & Finger, Robert & Mann, Stefan, 2012. "The effect of agricultural policy change on income risk in Swiss agriculture," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122532, European Association of Agricultural Economists.
    2. Robert Finger & Niklaus Lehmann, 2012. "The influence of direct payments on farmers’ hail insurance decisions," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 343-354, May.
    3. Finger, Robert & Lehmann, Niklaus, 2011. "Do Direct Payments Influence Farmers' Hail Insurance Decisions?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114355, European Association of Agricultural Economists.
    4. Ali Ferjani & Albert Zimmermann, 2013. "Modelling structural-change-related shifts in labour input in the agent-based sector model SWISSland," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 6(1), pages 177-200.
    5. 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.
    6. Robert Finger & Nadja El Benni, 2011. "Spatial Analysis of Income Inequality in Agriculture," Economics Bulletin, AccessEcon, vol. 31(3), pages 2138-2150.

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    Agricultural and Food Policy;

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