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Income Inequality of Rural Households in Poland – Analysis by Source of Income

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  • Wołoszyn, Andrzej
  • Głowicka-Wołoszyn, Romana

Abstract

Rural households live on income much lower than the national average and experience income inequality much higher than the general population. This excess inequality is primarily due to the internal heterogeneity caused by the different nature of household income sources. The purpose of the study was then to assess the level of rural household income inequality and to decompose the inequality index by the main sources of income. The chosen inequality index was Theil-T. The research drew on unidentifiable microdata from the Household Budget Survey conducted by the CSO in 2019-2021.The study found that rural household inequality was slightly higher than that of all Polish households over the analyzed period. Among the various income-source groups, the highest inequality affected farmer households. This group also contributed most to the overall level of inequality in rural areas (44% in 2019 and over 46% in 2021). The pandemic saw an increase in inequality for all identified groups of rural households (the largest – for farmer households) and a decrease in between-group inequality.

Suggested Citation

  • Wołoszyn, Andrzej & Głowicka-Wołoszyn, Romana, 2024. "Income Inequality of Rural Households in Poland – Analysis by Source of Income," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2024(01).
    • Handle: RePEc:ags:paaero:348633
    DOI: 10.22004/ag.econ.348633
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    References listed on IDEAS

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    1. Heffner Krystian & Twardzik Małgorzata, 2022. "Rural Areas in Poland – Changes Since Joining the European Union," European Countryside, Sciendo, vol. 14(2), pages 420-438, June.
    2. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    3. Monika Stanny & Łukasz Komorowski & Andrzej Rosner, 2021. "The Socio-Economic Heterogeneity of Rural Areas: Towards a Rural Typology of Poland," Energies, MDPI, vol. 14(16), pages 1-23, August.
    4. Stefanie Stantcheva, 2022. "Inequalities in the times of a pandemic," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(109), pages 5-41.
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