IDEAS home Printed from https://ideas.repec.org/p/ags/iaae09/51433.html
   My bibliography  Save this paper

Does Non-Farm Income Increase Farm-Household Income Inequality? Evidence from Three Continents

Author

Listed:
  • Kimhi, Ayal

Abstract

This paper performs inequality decomposition by income sources using data from three different continents, using a unified inequality decomposition approach. Household survey data from Ethiopia, Georgia and Korea are used for this purpose, and the uniform result is that non-farm labor income is an equalizing source of income, in the sense that increasing non-farm labor income by 1% uniformly results in a lower Gini index of inequality. These results shed light on the processes that affect farm-household inequality under various geographical, economic and institutional conditions, and imply that policy directed towards non-farm income sources could not only raise rural incomes on average but also potentially reduce inequality, i.e., be pro-poor.

Suggested Citation

  • Kimhi, Ayal, 2009. "Does Non-Farm Income Increase Farm-Household Income Inequality? Evidence from Three Continents," 2009 Conference, August 16-22, 2009, Beijing, China 51433, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51433
    DOI: 10.22004/ag.econ.51433
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/51433/files/Does%20Off%20Farm%20Income%20Increase%20Inequality.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.51433?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anthony F. Shorrocks, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(2), pages 311-326.
    2. 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.
    3. Chinn, Dennis L, 1979. "Rural Poverty and the Structure of Farm Household Income in Developing Countries: Evidence from Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 27(2), pages 283-301, January.
    4. El-Osta, Hisham S. & Bernat, G. Andrew & Ahearn, Mary C., 1995. "Regional Differences in the Contribution of Off-Farm Work to Income Inequality," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(1), pages 1-14, April.
    5. Leones, J P & Feldman, S, 1998. "Nonfarm Activity and Rural Household Income: Evidence from Philippine Microdata," Economic Development and Cultural Change, University of Chicago Press, vol. 46(4), pages 789-806, July.
    6. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    7. El-Osta, Hisham S. & Bernat, G. Andrew, Jr. & Ahearn, Mary Clare, 1995. "Regional Differences In The Contribution Of Off-Farm Work To Income Inequality," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-14, April.
    8. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Möllers, Judith & Buchenrieder, Gertrud, 2011. "Effects of Rural Non-farm Employment on Household Welfare and Income Distribution of Small Farms in Croatia," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 50(3), pages 1-19.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kimhi, Ayal, 2009. "Land Reform and Farm-Household Income Inequality: The Case of Georgia," Discussion Papers 54159, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    2. 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.
    3. Zelda Okatch & Abu Siddique & Anu Rammohan, 2013. "Determinants of Income Inequality in Botswana," Economics Discussion / Working Papers 13-15, The University of Western Australia, Department of Economics.
    4. Arthur Charpentier & Stéphane Mussard, 2011. "Income inequality games," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 529-554, December.
    5. Ayal Kimhi, 2010. "Entrepreneurship and income inequality in southern Ethiopia," Small Business Economics, Springer, vol. 34(1), pages 81-91, January.
    6. Jabłoński Łukasz, 2019. "Inequality in Economics: The Concept, Perception, Types, and Driving Forces," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(1), pages 17-43, March.
    7. Ayal Kimhi, 2009. "Male Income, Female Income, and Household Income Inequality in Israel: A Decomposition Analysis," Journal of Income Distribution, Ad libros publications inc., vol. 18(3-4), pages 34-48, September.
    8. Kimhi, Ayal, 2010. "International Remittances, Domestic Remittances, and Income Inequality in the Dominican Republic," Discussion Papers 93130, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    9. Mishra, Ashok & El-Osta, Hisham & Gillespie, Jeffrey M., 2009. "Effect of agricultural policy on regional income inequality among farm households," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 325-340, May.
    10. Stéphane Mussard, 2006. "La décomposition des mesures d’inégalité en sources de revenu : l’indice de Gini et les généralisations," Cahiers de recherche 06-05, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    11. Kimhi, Ayal, 2011. "Comment: On the Interpretation (and Misinterpretation) of Inequality Decompositions by Income Sources," World Development, Elsevier, vol. 39(10), pages 1888-1890.
    12. Michele Giammatteo, 2007. "The bidimensional decomposition of inequality: A nested Theil approach," LIS Working papers 466, LIS Cross-National Data Center in Luxembourg.
    13. Juan Antonio Duro & Jordi Teixidó-Figueras & Emilio Padilla, 2017. "The Causal Factors of International Inequality in $$\hbox {CO}_{2}$$ CO 2 Emissions Per Capita: A Regression-Based Inequality Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 683-700, August.
    14. Teixidó Figueras, Jordi & Duro Moreno, Juan Antonio, 2012. "Ecological Footprint Inequality: A methodological review and some results," Working Papers 2072/203168, Universitat Rovira i Virgili, Department of Economics.
    15. Babulo, Bedru & Muys, Bart & Nega, Fredu & Tollens, Eric & Nyssen, Jan & Deckers, Jozef & Mathijs, Erik, 2009. "The economic contribution of forest resource use to rural livelihoods in Tigray, Northern Ethiopia," Forest Policy and Economics, Elsevier, vol. 11(2), pages 123-131, March.
    16. Juan Antonio Duro & Jordi Teixidó-Figueras & Emilio Padilla Rosa, 2014. "The causal factors of international inequality in CO2 emissions per capita: A regression-based inequality decomposition analysis," Working Papers wpdea1402, Department of Applied Economics at Universitat Autonoma of Barcelona.
    17. Francisco Azpitarte, 2008. "The Household Wealth Distribution in Spain: The Role of Housing and Financial Wealth," Working Papers 83, ECINEQ, Society for the Study of Economic Inequality.
    18. Rafael De Hoyos, 2012. "Accounting for Mexican Income Inequality During the 1990s," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 103-125, November.
    19. Francesco Devicienti, 2010. "Shapley-value decompositions of changes in wage distributions: a note," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(1), pages 35-45, March.
    20. El Benni, Nadja & Finger, Robert, 2013. "The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 638-651.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.