Does Non-Farm Income Increase Farm-Household Income Inequality? Evidence from Three Continents

Ayal Kimhi

No 51433, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: This paper performs inequality decomposition by income sources using data from three different continents, using a unified inequality decomposition approach. Household survey data from Ethiopia, Georgia and Korea are used for this purpose, and the uniform result is that non-farm labor income is an equalizing source of income, in the sense that increasing non-farm labor income by 1% uniformly results in a lower Gini index of inequality. These results shed light on the processes that affect farm-household inequality under various geographical, economic and institutional conditions, and imply that policy directed towards non-farm income sources could not only raise rural incomes on average but also potentially reduce inequality, i.e., be pro-poor.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; International Development (search for similar items in EconPapers)
Pages: 12
Date: 2009
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:51433

DOI: 10.22004/ag.econ.51433

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