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The Relative Share of Labor in United States Agriculture, 1949–1968


  • Theodore P. Lianos


The sources of change in the relative share of labor in the American agricultural sector are examined within the framework of neoclassical production theory. It is found that the observed decline in labor's relative share is due to the increasing capital-labor ratio adjusted for changing efficiency of factors and to the elasticity of substitution which is greater than unity. It is also found that the efficiency of capital is increasing faster than that of labor and that technological change in American agriculture has been labor-saving.

Suggested Citation

  • Theodore P. Lianos, 1971. "The Relative Share of Labor in United States Agriculture, 1949–1968," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 411-422.
  • Handle: RePEc:oup:ajagec:v:53:y:1971:i:3:p:411-422.

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    Cited by:

    1. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
    2. Shumway, C. Richard & Talpaz, Hovav, 1980. "U.S. Aggregate Agricultural Production Elasticities Estimated By An Arima Factor Share Adjustment Model," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 0(Number 1), pages 1-7, July.
    3. Martin, Lee R., 1972. "Some Market Effects Of Agricultural Development On Functional Income Distribution In Developed Countries," Staff Papers 13403, University of Minnesota, Department of Applied Economics.
    4. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2014. "Labour adjustments in agriculture: evidence from Romania," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 0(Number 2), pages 1-7, August.
    5. McLean-Meyinsse, Patricia E. & Okunade, Albert Ade., 1988. "Factor Demands Of Louisiana Rice Producers: An Econometric Investigation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 0(Number 2), pages 1-10, December.
    6. Martin, Marshall A. & Havlicek, Joseph, Jr., 1977. "Technological Change And Labor'S Relative Share: The Mechanization Of U.S. Cotton Production," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 0(Number 2), pages 1-5, December.
    7. Zind, R. G. & Doutriaux, J., 1978. "Estimation de l’effet de la technologie sur le rendement des facteurs de production," L'Actualité Economique, Société Canadienne de Science Economique, vol. 54(1), pages 104-110, janvier-m.
    8. Kim, Tae-Kyun, 1989. "The factor bias of technical change and technology adoption under uncertainty," ISU General Staff Papers 1989010108000010138, Iowa State University, Department of Economics.
    9. Weaver, Robert D., 1980. "Measurement and Forecasting of Agricultural Productivity," Staff Paper Series 256838, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    10. Kim, C.S. & McElroy, Robert G. & Mishra, Ashok K. & Hallahan, Charles B., 2002. "Biased Biased Technological Progress In The U.S. Farm Sector: A Structural Perspective," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36526, Western Agricultural Economics Association.
    11. Vincent, David P., 1977. "Factor Substitution In Australian Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 2), pages 1-11, August.
    12. Ganguly, Pradeep, 1980. "Technological Change And The Relative Share Of Labor: The Case Of Tobacco Production In The U.S," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 0(Number 2), pages 1-6, December.

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