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Income mobility and income inequality in Scottish agriculture

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  • Paul Allanson
  • Kalina Kasprzyk
  • Andrew P. Barnes

Abstract

The paper proposes the use of a range of alternative measures to provide a rounded evaluation of the distributional consequences of farm income mobility, where this multifaceted approach is designed to shed light both on the extent to which farm income inequality is a short-run phenomenon due to transitory shocks rather than a chronic or persistent problem due to structural factors, and on the nature of the dynamic processes driving changes in farm income inequality over time. An illustrative empirical study of Scottish agriculture using Farm Accounts Survey data reveals that the majority of farm income inequality was structural in nature despite a substantial degree of income risk due to the volatility of agricultural incomes. Results on the micro-dynamics of inequality change have to be interpreted with caution due to the particular rules governing the assignment of farm identifiers in the survey.

Suggested Citation

  • Paul Allanson & Kalina Kasprzyk & Andrew P. Barnes, 2015. "Income mobility and income inequality in Scottish agriculture," Dundee Discussion Papers in Economics 290, Economic Studies, University of Dundee.
    • Handle: RePEc:dun:dpaper:290
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    File URL: http://www.dundee.ac.uk/media/dundeewebsite/economicstudies/documents/discussion/DDPE_290.pdf
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    Cited by:

    1. Barnes, Andrew P. & Thomson, Steven G. & Ferreira, Joana, 2020. "Disadvantage and economic viability: characterising vulnerabilities and resilience in upland farming systems," Land Use Policy, Elsevier, vol. 96(C).
    2. Loughrey, Jason James & Donnellan, Trevor, 2017. "Inequality and Concentration in Farmland Size: A Regional Analysis for Western Europe," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261112, European Association of Agricultural Economists.
    3. Barnes, Andrew & Thomson, Steven & Ferreira, Joana, 2018. "Disadvantage and Economic Viability: Evidence from Scottish Upland Farming," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271954, European Association of Agricultural Economists.
    4. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    5. O'Neill,Stephen & Loughrey, Jason & Hynes, Stephen & O'Donoghue, Cathal & Hanrahan, Kevin, 2017. "The Redistributive Impact of EU Farm Payment Reforms in the UK and Ireland," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261107, European Association of Agricultural Economists.

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    More about this item

    Keywords

    farm incomes; income mobility; income inequality; Scotland;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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