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How do different off-farm income sources affect income inequality among farm households?

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  • Severini, Simone
  • Tantari, Antonella

Abstract

This paper investigates how different off-farm income sources and CAP direct payments affect income inequality among farm households. It uses the Gini coefficient and its decomposition on the whole sample of FADN individual farms of Italy in 2011. CAP direct payments and the overall off-farm incomes reduce income concentration. However, of the five considered off-farm income sources, only pensions significantly decrease it. This suggests that, if decreasing income inequality is a relevant goal, CAP direct payments and pensions are two important policy tools to do so, while this may not be the case of policies increasing other off-farm income sources.

Suggested Citation

  • Severini, Simone & Tantari, Antonella, 2014. "How do different off-farm income sources affect income inequality among farm households?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182843, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182843
    DOI: 10.22004/ag.econ.182843
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    References listed on IDEAS

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    4. Simone Severini & Antonella Tantari, 2013. "The impact of agricultural policy on farm income concentration: the case of regional implementation of the CAP direct payments in Italy," Agricultural Economics, International Association of Agricultural Economists, vol. 44(3), pages 275-286, May.
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    Cited by:

    1. Rocchi, B & Marino, M & Severini, S, 2018. "Does a farm household income problem still exist in the European Union?," 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy 275653, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Benedetto Rocchi & Maria Marino & Simone Severini, 2021. "Does an Income Gap between Farm and Nonfarm Households Still Exist? The Case of the European Union," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1672-1697, December.

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