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The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions

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  • El Benni, Nadja
  • Finger, Robert

Abstract

Using FADN data, we analyse the development of income inequality in Swiss agriculture for the valley, hill and mountain regions over the period 1990–2009. While household income inequality remained stable, farm income inequality increased during this period. Estimated Gini elasticities show that household income inequality is reduced by off-farm income and direct payments but is increased by market income. Both, the introduction of area-based direct payments in 1992 and the abandonment of farm household payments in 1999 have regional different effects. Agricultural policy should opt for measures that comply with regional requirements, as current direct payments cannot avoid that income from farming is drifting further apart.

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  • 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.
    • Handle: RePEc:eee:jpolmo:v:35:y:2013:i:4:p:638-651
    DOI: 10.1016/j.jpolmod.2012.03.005
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    More about this item

    Keywords

    Regional income inequality; Agricultural policy reforms; Direct payments; Gini decomposition;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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