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The income penalty of farming and fishing: results from a sibling approach

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  • Martin Nordin
  • Johan Blomquist
  • Staffan Waldo

Abstract

This study explores an apparently paradoxical finding in farming and fishing: low economic returns, but a high rate of occupational transmission across generations of farmers and fishers. Using a sibling model containing 11,924 children of Swedish farmers and fishers in 2012, we estimate that farmers' sons who became farmers received 28 per cent lower income than same-sex siblings with a career outside farming. For farmers' daughters and fishers' sons, the income gap was about 22 per cent relative to same-sex siblings. Our conclusion is that the decision to become a fisher or a farmer is largely determined by non-pecuniary factors.

Suggested Citation

  • Martin Nordin & Johan Blomquist & Staffan Waldo, 2016. "The income penalty of farming and fishing: results from a sibling approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(3), pages 383-400.
    • Handle: RePEc:oup:erevae:v:43:y:2016:i:3:p:383-400.
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    File URL: http://hdl.handle.net/10.1093/erae/jbv036
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    Cited by:

    1. Martin Nordin & Sören Höjgård, 2019. "Earnings and Disposable Income of Farmers in Sweden, 1997–2012," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(1), pages 153-173, March.

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