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Decomposition Of Income Distribution Among Farm Families

Author

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  • Reddy, Wenkateshwar K.
  • Findeis, Jill L.

Abstract

The greater reliance of U.S. farm families on off-farm income has implications for the structure of agriculture and the distribution of income within agriculture. Using annual data on farm households from the Current Population Survey, the degree of income inequality for the U.S. and by region is assessed for 1984. The distribution of income among farm families is decomposed by income source. Off-farm income is shown to contribute to higher average incomes and reduce income inequality at the margin, but only in regions where full-time farming predominates. In the Northeast and South, increases in off-farm income increase regional income inequality.

Suggested Citation

  • Reddy, Wenkateshwar K. & Findeis, Jill L., 1987. "Decomposition Of Income Distribution Among Farm Families," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-9, October.
  • Handle: RePEc:ags:nejare:28973
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    File URL: http://ageconsearch.umn.edu/record/28973/files/16020165.pdf
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    References listed on IDEAS

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    1. Cochrane, Willard W., 1987. "Saving the Modest-Sized Farm Or, The Case For Part-Time Farming," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 0(Issue 2), pages 1-4.
    2. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    3. Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 451-473.
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    Cited by:

    1. Severini, Simone & Tantari, Antonella, 2013. "The effect of the EU farm payments policy and its recent reform on farm income inequality," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 212-227.
    2. 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. 0(Issue 2), pages 1-17, August.
    3. 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.
    4. repec:eee:forpol:v:88:y:2018:i:c:p:24-37 is not listed on IDEAS
    5. Boisvert, Richard N., 2002. "Analysis of a Re-Focused Agricultural Policy within a Farm-Household Framework Some Data Requirements," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13,2002, Wye Campus, Imperial College 15727, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    6. Hung-Hao, Chang & Boisvert, Richard N. & Tauer, Loren W., 2008. "Explaining Changes in the Distribution of Annual Dairy Farm Income over Time," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6544, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Brian C. Briggeman & Maria M. Akers, 2010. "The credit advantage of farm and rural small business ownership," Agricultural Finance Review, Emerald Group Publishing, vol. 70(3), pages 353-364, November.
    8. Severini, Simone & Tantari, A., 2012. "How direct payments and their reform have affected farm income inequality in Italy?," 2012 First Congress, June 4-5, 2012, Trento, Italy 124099, Italian Association of Agricultural and Applied Economics (AIEAA).
    9. Mishra, Ashok K. & El-Osta, Hisham S., 2001. "Decomposition Of Variability In Assets And Debt Of Farm Households In The U.S," 2001 Annual meeting, August 5-8, Chicago, IL 20608, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. El-Osta, Hisham S. & Morehart, Mitchell J., 2009. "Welfare Decomposition in the Context of the Life Cycle of Farm Operators: What Does a National Survey Reveal?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-17, October.
    11. Goetz, Stephen J., 1991. "Single- and Multi-Dimensional Theil Measures of Inequality: An Application to Farm Households," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271278, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Severini, Simone & Tantari, Antonella, 2015. "The distributional impact of agricultural policy tools on Italian farm household incomes," Journal of Policy Modeling, Elsevier, vol. 37(1), pages 124-135.

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    Keywords

    Consumer/Household Economics;

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