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The Agricultural Productivity Gap

  • Douglas Gollin
  • David Lagakos
  • Michael E. Waugh

According to national accounts data, value added per worker is much higher in the non-agricultural sector than in agriculture in the typical country, and particularly so in developing countries. Taken at face value, this "agricultural productivity gap" suggests that labor is greatly misallocated across sectors. In this paper, we draw on new micro evidence to ask to what extent the gap is still present when better measures of sector labor inputs and value added are taken into consideration. We find that even after considering sector differences in hours worked and human capital per worker, as well as alternative measures of sector output constructed from household survey data, a puzzlingly large gap remains.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19628.

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Date of creation: Nov 2013
Date of revision:
Publication status: published as Douglas Gollin & David Lagakos & Michael E. Waugh, 2014. "The Agricultural Productivity Gap," The Quarterly Journal of Economics, Oxford University Press, vol. 129(2), pages 939-993.
Handle: RePEc:nbr:nberwo:19628
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