Getting income shares right in agriculture

David Gomtsyan

Applied Economics Letters, 2018, vol. 25, issue 1, 66-69

Abstract: Most economic studies assume that factor shares are constant across countries and sectors. This article calculates factor shares in the agricultural sector across all US states and shows that there are huge differences, which can be explained by crop composition. In states that focus on more labour-intensive crops, such as fruits, the share of income going to labour is larger than in grain-growing states.

Date: 2018
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DOI: 10.1080/13504851.2017.1293783

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