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Trends in Farm Income Mobility and Inequality in Ireland

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  • Stephen Hynes

    () (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • Cathal O’Donoghue

    () (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

Abstract

Using eight years of data of the National Farm Survey (NFS) to analyse the farm earnings distribution in the period 1994 to 2001 we ask the question: is the Irish farming sector close to a society where individuals move up and down the earnings ladder over time or is it more similar to a society where individuals are stuck in the same step? We find that for those in the middle of the Irish farm earnings distribution the answer is close to the former but for those at either end of the Irish farm earnings distribution the answer is much closer to the latter. In getting to this answer we look at earnings inequality, characterise transition probabilities and model earnings dynamics as a purely stochastic process.

Suggested Citation

  • Stephen Hynes & Cathal O’Donoghue, 2005. "Trends in Farm Income Mobility and Inequality in Ireland," Working Papers 0505, Rural Economy and Development Programme,Teagasc.
  • Handle: RePEc:tea:wpaper:0505
    as

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    File URL: http://www.teagasc.ie/rural-economy/downloads/workingpapers/05wpre05.pdf
    File Function: First version, 2005
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    References listed on IDEAS

    as
    1. Donald O’Neil & Olive Sweetman, 2001. "Inequality in Ireland 1987-1994: A Comparison Using Measures of Income and Consumption," Journal of Income Distribution, Ad libros publications inc., vol. 10(3-4), pages 2-2, September.
    2. Redmond, Gerry & Kattuman, Paul, 2001. "Employment Polarisation and Inequality in the UK and Hungary," Cambridge Journal of Economics, Oxford University Press, vol. 25(4), pages 467-480, July.
    3. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    4. Mary Keeney, 2000. "The Distributional Impact of Direct Payments on Irish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 252-265.
    5. Kalwij, Adriaan & Alessie, Rob, 2003. "Permanent and Transitory Wage Inequality of British Men, 1975-2001: Year, Age and Cohort Effects," IZA Discussion Papers 686, Institute for the Study of Labor (IZA).
    6. Richard Dickens, 1997. "Caught In A Trap? Wage Mobility in Great Britain: 1975-94," CEP Discussion Papers dp0365, Centre for Economic Performance, LSE.
    7. Brian Nolan & Bertrand Maitre, 2000. "A Comparative Perspective on Trends in Income Inequality in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(4), pages 329-350.
    8. Sloane, P J & Theodossiou, I, 1996. "Earnings Mobility, Family Income and Low Pay," Economic Journal, Royal Economic Society, vol. 106(436), pages 657-666, May.
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