Does Income Inequality Exist among Urban Farmers? A Demonstration of Lorenz Curves from Northern Thailand

Abstract

This study was motivated by the profound disparity of farmers’ income in northern Thailand. We aimed to investigate the inequalities in the distribution of estimated income among urban farmers in the Mueang district area of Nan province using the Lorenz curves and Gini indices. Approximations of farmers’ incomes were calculated and the Tobit model was applied to identify the determinants of farm income diversification in each sub-district. Results showed that urban farmers had high inequality scores, and there was a wide range of income among farmers. Ownership, land entitlement, and farmland size positively contributed to farmers’ estimated income. Agricultural activities further showed that rice farming significantly raised income disparity, while maize cultivation negatively affected it in nearly all sub-districts. Therefore, this study contributes an important indication that leads farmers to a sustainable livelihood while simultaneously adjusting relevant institutional policies.

Income Inequality in Mountain Areas: The Case of Agroforestry Farming Systems in Uluguru Mountains, Tanzania

“…a graph depicting the variance of the size distribution of income from perfect equality). The Gini coefficient or Gini index (G) is another commonly used measure of the relative degree of income inequality (Ahearn et al, 1985;Adams, 1994;Keeney, 2000;Fang & Rizzo, 2011;Li et al, 2011;Ciliberti & Frascarelli, 2018;Jaitiang et al, 2021). There are various formulas that are used to calculate the Gini coefficient.…”

“…There are various formulas that are used to calculate the Gini coefficient. An example of these is presented in Equation (1) (Jaitiang et al, 2021).…”

“…Equally important, much of the previous research on inequality uses time series or panel data focusing on broader scales, such as national, regional and multinational levels (e.g. Kata & Wosiek, 2020;Jaitiang et al, 2021). Studies which use crosssectional data while focusing on small scale sites and locations such as, hamlets, villages and wards of mountain areas are lacking.…”

“…In the Mueang District area of Nan Province in Northern Thailand, Jaitiang et al (2021) have investigated inequalities in the distribution of estimated income among urban farmers using the Lorenz curves and Gini indices. They used regional raw data which had an intricate design and construct gathered during a survey that was conducted annually by the Department of Agricultural Extension in Thailand.…”