Farm household incomes in oecd member countries over the last 30 years of public support

Frahan, Bruno Henry de; Dong, Jérémie; Blander, Rembert De

doi:10.4324/9781315624440-8

Cited by 7 publications

(24 citation statements)

References 8 publications

(20 reference statements)

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“…In particular, narrow farm families are better off on average than nonfarm households in all samples except when considering the extended income in the NMS, where the income disparity is not significant. Such results are in line with Eurostat (2001) but partly contradict the latest evidence in de Frahan et al (2017), although the latter focuses on OECD countries only.…”

Section: Conditional Farm/non-farm Income Differencessupporting

confidence: 78%

Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis

Marino¹,

Rocchi²,

Severini³

2021

J Agricultural Economics

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Government interventions in the agricultural sector have been historically justified by the existence of an income disparity between farmers and non-farmers. However, recent studies have found that such disparity is disappearing over time, particularly in the United States. This work offers the first longitudinal systematic assessment on the average income disparity between farm and non-farm units in the European Union, differentiating between old and new Member States. Using the EU-SILC dataset, both broad (having some farm income) and narrow (living mainly on agriculture) farm households are compared with a general sample of non-farm households and a more restricted sample of self-employed non-farm households. To control for household observable characteristics and time-constant unobserved factors, we use a fixed effects regression. Results suggest that the farm/non-farm income disparity has disappeared in the European Union unless we compare narrow farm households with all non-farm households: in this case, the former are more likely to be better off than the latter. A limited income disparity is found only in the case of new Member States for broad farm households only. Results are used to draw policy implications regarding the role of CAP in supporting farm income.

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Section: Conditional Farm/non-farm Income Differencessupporting

confidence: 78%

Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis

Marino¹,

Rocchi²,

Severini³

2021

J Agricultural Economics

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“…A similar trend has been detected in the European Union (EU), even though results are sparse and not fully comparable (e.g. Stefani, Rocchi, and Romano 2012; De Frahan, Dong, and De Blander 2018; Nordin and Höjgård 2018). These results, if confirmed, should reorient the government's role in the sector.…”

Section: Introductionsupporting

confidence: 54%

“…The last comprehensive analysis for Europe refers to 2001 (Eurostat 2003). More recent research has been developed by De Frahan, Dong, and De Blander (2018), who analyze OECD countries and Stefani, Rocchi, and Romano (2012) and Severini and Tantari (2014), who work with Italian data.…”

Section: Introductionmentioning

confidence: 99%

“…For instance, Katchova (2008) and Nordin and Höjgård (2018) control for relevant household characteristics (such as age). Beside, De Frahan, Dong, and De Blander (2018) suggest that on average, low income is not a chronic problem among farm households in none of the ten surveyed OECD countries. However, they show that disparity exists among countries.…”

Section: Introductionmentioning

confidence: 99%

“…Consensus on the presence of a farm household income gap, however, cannot be easily achieved since different approaches and sources are used. De Frahen et al (2018, p.126) also states: “When income comparisons do exist…they are sensitive to the sources of information, the methods of estimation, and the definitions of incomes and farm households versus non‐farm households that are used.”…”

Section: Introductionmentioning

confidence: 99%

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Does an Income Gap between Farm and Nonfarm Households Still Exist? The Case of the European Union

Rocchi¹,

Marino²,

Severini³

2020

Applied Eco Perspectives Pol

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The paper compares the income conditions of farm and nonfarm households in the whole EU and within three geographical groups of countries for the period 2008–2016. Overcoming the simple comparison of raw means of the groups, we estimate the farm/nonfarm income differentials by using Regression Adjusted and Covariate Matching techniques, which allow to control for observable characteristics among groups. Three innovative features of our analysis are that we account for the whole income of farm households (i.e. not only farm income), for the presence of in‐kind incomes from self‐consumption of produced goods and imputed rents from properties, and for the complex survey design. We find that an income differential still exists but with relevant differences across countries and along the period. Most of it is due to differences in the households’ characteristics. Hence, comparing raw means of the two groups can be misleading. Nonmonetary sources of income play a not negligible role, improving the relative position of farm households. The role of agricultural and rural policy is discussed in the light of results.

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Climate change and the nonlinear impact of precipitation anomalies on income inequality

Palagi

Coronese

Lamperti

et al. 2022

Proc. Natl. Acad. Sci. U.S.A.

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Climate anomalies, such as floods and droughts, as well as gradual temperature changes have been shown to adversely affect economies and societies. Although studies find that climate change might increase global inequality by widening disparities across countries, its effects on within-country income distribution have been little investigated, as has the role of rainfall anomalies. Here, we show that extreme levels of precipitation exacerbate within-country income inequality. The strength and direction of the effect depends on the agricultural intensity of an economy. In high-agricultural-intensity countries, climate anomalies that negatively impact the agricultural sector lower incomes at the bottom end of the distribution and generate greater income inequality. Our results indicate that a 1.5-SD increase in precipitation from average values has a 35-times-stronger impact on the bottom income shares for countries with high employment in agriculture compared to countries with low employment in the agricultural sector. Projections with modeled future precipitation and temperature reveal highly heterogeneous patterns on a global scale, with income inequality worsening in high-agricultural-intensity economies, particularly in Africa. Our findings suggest that rainfall anomalies and the degree of dependence on agriculture are crucial factors in assessing the negative impacts of climate change on the bottom of the income distribution.

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Farm household incomes in oecd member countries over the last 30 years of public support

Cited by 7 publications

References 8 publications

Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis

Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis

Does an Income Gap between Farm and Nonfarm Households Still Exist? The Case of the European Union

Climate change and the nonlinear impact of precipitation anomalies on income inequality

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