The Agricultural Productivity Gap in Europe
AbstractFor fifteen European countries over the 1970-2004 period we establish that there is a large and persistent agricultural productivity gap, the ratio of labor productivity in non-agriculture to that in agriculture. Correcting for under-reporting of self-employment income in both agriculture and non-agriculture significantly reduces the measured agricultural productivity gap. For countries with information on years of school and experience at the sector level, we also find substantially higher human capital in non-agriculture than in agriculture. Our findings suggest that measured labor productivity differences between agriculture and non-agriculture in European countries are not an indicator of resource misallocation, but possibly an artifact of mismeasurement of value added and sectoral differences in human capital.
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Bibliographic InfoPaper provided by The University of Winnipeg, Department of Economics in its series Departmental Working Papers with number 2013-05.
Length: 25 pages
Date of creation: Dec 2013
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Find related papers by JEL classification:
- E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-12-29 (Agricultural Economics)
- NEP-ALL-2013-12-29 (All new papers)
- NEP-EFF-2013-12-29 (Efficiency & Productivity)
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