PhD, Technical Assistant, Szent István University, Georgikon Campus, Keszthely, Hungary
The significant roles of agriculture in the economic development of a country are determinative. It has already made a substantial contribution to the economic prosperity of advanced countries. Its role in the economic development of less developed countries is of vital importance. The share of the population working in agriculture is declining as countries develop. While less than 5% of the population does in rich countries work in agriculture, more than two-thirds of the people in poor countries. It is predominantly the huge productivity increase that makes this reduction in labor possible. The aim of the study is to provide a comprehensive picture of the situation of agriculture in the European Union from 2010 to 2019, with a particular focus on agricultural income and labor force developments. The number of employed in agriculture has decreased globally (by almost -14%) and in the European Union (by nearly -19%). The added value of agriculture has grown at a similar rate worldwide (by almost +22%) and in the European Union (by almost +23%). Indicators of agricultural income showed indicator A an increase of 25.56%, indicator B 39.11% and index C 20.39% in 2017 compared to 2010. In 2019 the gross value added in agriculture was the most significant in Germany, Spain, France, and Italy. Together, the four countries accounted for 42% gross value added in agriculture of EU-28. Indicator A, B and C of agricultural income showed in 2019 the most significant positive change in Bulgaria, in Denmark and Romania. Employment in agriculture was the highest in Poland and Romania in 2019. Several reasons can explain the differences in the development of agricultural performance in each European Union country. These reasons can be grouped. On the one hand, the location varies from country to country. Due to their different locations, their climatic, natural and ecological conditions are different. Another important difference is the size of the states. On the other hand, the structure and organization of society are different. Thirdly, the economic situation and status of each country are different.
Keywords: Agriculture, Labor, Income, Inequality, European Union.
JEL Classification: E24, J21, J31, J43, Q14.
Cite as: Kiss, L.B. (2020). Examination of Agricultural Income Inequality in the European Union. Business Ethics and Leadership, 4(3), 36-45. https://doi.org/10.21272/bel.4(3).36-45.2020
This work is licensed under a Creative Commons Attribution 4.0 International License
- Acemoglu, D., & Autor, D. (2011). Skills, tasks and technologies: Implications for employment and earnings. In: Ashenfelter O and Card DE (eds), Handbook of Labor Economics, Volume 4b. Amsterdam: Elsevier, 1043-1072. DOI:10.1016/S0169-7218(11)02410-5.
- Adelman, I., & Morris, C.Y. (1978). Growth and impoverishment in the middle of the nineteenth century. World Development, 6, 245-273. https://doi.org/10.1016/0305-750X(78)90107-9.
- Ahluwalia, M.S. (1976). Income distribution and development: Some stylized facts. American Economic Review, 66, 128–135. Available at: https://econpapers.repec.org/article/aeaaecrev/v_3a66_3ay_3a1976_3ai_3a2_3ap_3a128-35.htm.
- Autor, D., Levy, F., Murnane, R.J. (2003). The skill content of recent technological change: An empirical exploration. Quarterly Journal of Economics 118(4), 1279-1333. https://doi.org/10.1162/003355303322552801.
- Autor, D., & Dorn, D. (2010). Inequality and specialization: The growth of low-skill service jobs and the polarization of the U.S. labor market. MIT Working Paper. Available at: http://ftp.iza.org/dp4290.pdf.
- Black, S.E., & Spitz-Oener, A. (2010). Explaining women’s success: Technological change and the skill content of women’s work. Review of Economics and Statistics 92(1), 187-194. https://doi.org/10.1162/rest.2009.11761.
- Bluestone, B. (1990). The great U-turn revisited: Economic restructuring, jobs, and the redistribution of earnings. In: Kasarda JD (ed.) Jobs, Earnings, and Employment Growth Policies in the United States. Boston, MA: Kluwer, 7-43. Available at: https://link.springer.com/chapter/10.1007/978-94-009-2201-3_2.
- Bluestone, B., & Harrison, B. (1982). The Deindustrialization of America: Plant Closings, Community Abandonment, and the Dismantling of Basic Industries. New York: Basic Book. Available at: https://doi.org/10.1002/hrm.3930220413.
- Chenery, H., & Syrquin, M. (1975). Patterns of Development, 1950-1970. London: Oxford University Press. Available at: https://documents.worldbank.org/en/publication/documents-reports/documentdetail/482491468328816108/patterns-of-development-1950-1970.
- Chevan, A., & Stokes, R. (2000). Growth in family income inequality, 1970-1990: Industrial restructuring and demographic change. Demography, 37, 365-380. DOI 10.2307/2648048.
- Eurostat (2019). Agriculture statistics at regional level. Available at: https://ec.europa.eu/eurostat/statistics-explained/index.php/Agriculture_statistics_at_regional_level.
- Eurostat (2020). Farm indicators by agricultural area, type of farm, standard output, legal form and NUTS 2 regions. https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ef_m_farmleg&lang=en.
- Eurostat (2020a). Gross value added of the agricultural industry – basic and producer prices. Available at: http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=tag00056&lang=en.
- Eurostat (2020b). Economic accounts for agriculture – agricultural income (indicators A, B, C). Available at: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=aact_eaa06&lang=en.
- Eurostat (2020c). Employment by sex, age and economic activity. Available at: https://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do.
- FAO (2002). World agriculture: towards 2015/2030. Summary report. FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2002. Available at: http://www.fao.org/3/a-y3557e.pdf.
- Harrison, B., & Bluestone, B. (1988). The Great U-Turn: Corporate Restructuring and the Polarizing of America. New York: Basic Books. Available at: https://econpapers.repec.org/article/cupjechis/v_3a49_3ay_3a1989_3ai_3a01_3ap_3a247-248_5f00.htm.
- Katz, L. (2000). Technological change, computerization, and the wage structure. In: Brynjolfsson E and Kahin B (eds) Understanding the Digital Economy: Data, Tools, and Research. Cambridge: MIT Press, 217-244. Available at: https://scholar.harvard.edu/files/lkatz/files/technological_change_computerization_and_the_wage_structure.pdf.
- Khanna, N., & Solanki, P. (2014). Role of agriculture in the global economy. 2nd International Conference on Agricultural & Horticultural Sciences. Agrotechnol, 2(4), 221. http://dx.doi.org/10.4172/2168-9881.S1.008.
- Kim, C.H., & Sakamoto, A. (2008). The rise of intra-occupational wage inequality in the United States, 1983 to 2002. American Sociological Review, 78, 129-157. DOI: 10.1177/000312240807300107.
- Krueger, A.B. (1993). How computers have changed the wage structure: Evidence from microdata, 1984-1989. Quarterly Journal of Economics, 108, 33-60. https://doi.org/10.2307/2118494.
- Kuznets, S. (1955). Economic growth and income inequality. The American Economic Review, 45(1), 1-28. Available at: http://gabriel-zucman.eu/files/teaching/Kuznets55.pdf.
- Kwon, R. (2014). Employment transitions and the cycle of income inequality in postindustrial societies. International Journal of Comparative Sociology, 55(5), 404-428. https://doi.org/10.1177/0020715214561133.
- Lee, C.S., Kim, Y.B., Shim, J.M. (2011). The limit of equality projects: Public-sector expansion, sectoral conflicts, and income inequality in postindustrial economies. American Sociological Review, 78(1), 100-124. https://doi.org/10.1177/0003122410396195.
- Levy, F., & Michel, R.C. (1991). The Economic Future of American Families: Income and Wealth Trends. Washington, DC: Urban Institute Press. https://doi.org/10.1002/pam.4050110324.
- Levy, F., & Murnane, R.J. (1992). U.S. earnings levels and earnings inequality: A review of recent trends and proposed explanations. Journal of Economics Literature, 30, 1333-1381. Available at: https://econpapers.repec.org/article/aeajeclit/v_3a30_3ay_3a1992_3ai_3a3_3ap_3a1333-81.htm.
- Moller, S., Alderson, A., Nielsen, F. (2009). Changing patterns of income inequality in U.S. counties, 1970-2000. American Journal of Sociology, 114(4), 1037-1101. DOI: 10.1086/595943.
- Nelson, J.I., & Lorence, J. (1988). Metropolitan earnings inequality and service sector employment. Social Forces, 67, 492-511. DOI:10.1093/sf/67.2.492.
- Praburaj, L. (2018). Role of Agriculture in the Economic Development of a Country. Shanlax International Journal of Commerce, 6(3), 1-5. DOI:10.5281/zenodo.1323056.
- Williamson, J.G., & Lindert, P.H. (1980). American Inequality: A Macroeconomic History. New York: Academic Press. Available at: link.
- World Bank (2020). Employment in agriculture (% of total employment) (modeled ILO estimate). Available at: https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS.
- World Bank (2020a). Agriculture, forestry, and fishing, value added (% of GDP). Available at: https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS.
- World Bank (2020b). Agriculture, forestry, and fishing, value added (constant 2010 US$). Available at: https://data.worldbank.org/indicator/NV.AGR.TOTL.KD.