Why is Measured Productivity so Low in Agriculture?
Berthold Herrendorf () and
Todd Schoellman ()
Review of Economic Dynamics, 2015, vol. 18, issue 4, 1003-1022
In poor countries, labor productivity in agriculture is considerably lower than in the rest of the economy. We assess whether this well known fact implies that labor is mis-allocated between the two sectors. We make several observations that suggest otherwise. First, the same fact holds for US states where severe mis-allocation is implausible. Second, the gaps between the marginal value products of agriculture and non-agriculture are considerably smaller when measured through wages than through labor productivities. Third, labor productivity in agriculture is severely mis-measured in the US. (Copyright: Elsevier)
Keywords: Mis-allocation of labor; Productivity gaps; Wage gaps (search for similar items in EconPapers)
JEL-codes: O1 (search for similar items in EconPapers)
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