Trends in Farm Income Mobility and Inequality in Ireland
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.
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