Farm Household Incomes: Perceptions and Statistics

Although concern with the incomes of the agricultural community is at the centre of agricultural policy in Europe, and a major reason why reform of the CAP has been opposed, reliable statistics on the incomes of farmers and their households are scarce. Policy has been built on assumptions about incomes in agriculture that have remained largely unsubstantiated by official statistics. Recently, information has been generated by Eurostat about the aggregate disposable income of the agricultural household sector in EU countries which, though falling short of being comprehensive, causes some of these assumptions to be seriously challenged. By providing policymakers with better information, and indicating where more detailed statistics are needed, the quality of policy decisions should be improved.     

The economic diversity of rural England: stylised fallacies and uncertain evidence

Debate about rural policy is often based on persistent presumptions about conditions in ‘rural England’, generally associated with economic decline, low incomes, and a lack of services. Such generalisations are rarely justified for rural areas as a whole and we term them as ‘stylised fallacies’. The impression of their relevance is perpetuated by the selective comparison of statistics for ‘urban’ and ‘rural’ areas. The paper reviews the evidence on a number of such fallacies: the economic impact of agriculture, depopulation, low incomes, rural labour markets, house prices and service provision. In each case, the position is far more complex than is commonly recognised in policy debate. The rural character of an area does not in itself offer a rationale for policy intervention. Rather, discussion could be supported through the characterisation of different types of local area. This might be approached either through statistical analysis or through qualitative analysis of emerging social and economic patterns of differentiation. In practice, each approach needs to be supported through the other.     

Medicaid matching formula, federal subsidies, and Medicaid payments

The federal government uses the Medicaid matching formula to distribute federal funds to states to finance various social welfare programs involving billions of dollars. How does the formula affect the distribution of federal money? How would that distribution change if a revised formula were used? This article presents the results of a regression analysis on Medicaid payments in the states and the federal subsidies for states to finance Medicaid. The findings indicate that under the current Medicaid matching formula, fewer federal subsidy dollars per poor person go to states with lower per capita incomes and to states with a higher percentage of African Americans than to states with the opposite characteristics. Even under the revised formula, states with lower per capita incomes would receive the same amount of federal matching dollars per poor person as would states with higher per capita incomes. The implications for policy are discussed.     

TAX POLICY AND INCOME INEQUALITY IN THE UNITED STATES, 1979–2007

This paper assesses the effects of U.S. tax policy reforms on inequality over around three decades, from 1979 to 2007. It applies a new method for decomposing changes in government redistribution into (1) a direct policy effect resulting from policy changes and (2) the effects of changing market incomes. Over the period as a whole, the tax policy changes increased income inequality by pushing up the income share of high‐income earners (the top 20%). (JEL H23, H31, H53, P16)     

The employment effects of social security tax changes and minimum wage regulations: A case study of the American restaurant industry

Several recent changes in public policy in the United States have significantly affected labor market conditions in the restaurant industry. First, at the close of 1987, Congress passed legislation requiring employers to pay, for the first time, Social Security taxes (hereinafter FICA) on the tip incomes of restaurant employees. Second, after a long hiatus, there were two successive increases in the federal minimum wage law — one on April 1, 1990, and the second exactly one year later. This study attempts to measure the employment effects of these policy changes and, in the process, to illuminate how seemingly minor changes in public policy may have very substantial effects on markets.     

Targeting disadvantage in agriculture

The effectiveness of the main policy instrument targeting support at farmers in disadvantaged areas of the UK from 1976 to 2000 (the Hill Livestock Compensatory Allowance Scheme) is evaluated for Northern Ireland, using recursive linear programming models and input–output analysis. Capital, income and employment effects of the Scheme in its latter years are estimated and assessed against declared policy objectives. It is estimated that average farm cash incomes would have been between 17 and 31 per cent lower in the absence of HLCA payments, while farmer net worth would have fallen by approximately 1 per cent annually. In aggregate, some 1000 jobs were sustained by the Scheme and incomes and profits in the region were boosted by £9 million each year. The main economic effect arising from the introduction of a successor area-based subsidy, will be a redistribution of payments from farms with relatively high stocking rates (predominantly larger units) to those operating more extensively (mostly smaller, part-time farms).     

Agricultural Household Models: Genesis,Evolution, and Extensions

This paper offers a synthesis of agricultural household modeling, its evolution and uses; presents a general yet simple agricultural household model, estimated with Mexican village data and programmed using General Algebraic Modeling System software; and uses this model to explore household-level impacts of agricultural policy changes on production and incomes under alternative rural-market scenarios. We point out limitations of household-farm models in heterogeneous rural economies and discuss how to integrate multiple household models into economy-wide models designed to overcome these limitations.     

Predicting Earnings Among Immigrants To Canada: The Role Of Source Country

The current study examines the importance of country of origin in predicting the labour market earnings among recent immigrants to Canada. The authors argue that, in addition to individual‐level characteristics associated with immigrant capital, macro‐level features associated with immigrant origins must be taken into account when considering the economic performance of immigrants in their host country. Country‐level factors are said to accompany immigrants to their destination country, which generate disparities in the “quality” of immigrants’ human and social capital across origin groups, as well as differences in how they are received by the resident population. The present study uses random effects multilevel modelling to investigate the extent to which immigrant incomes vary randomly across source country while taking into consideration individual‐level characteristics selected on the basis of human capital, social capital, and discrimination theories. Multilevel regression analysis confirms that immigrant incomes indeed vary significantly by country of origin, though the effect is small. Furthermore, it is revealed that the gross domestic product (GDP) of the sending country explains much of the level 2 variability in the labour market earnings of recent immigrants, as well as the relationship between racial minority status and immigrant incomes. The practical significance and policy implications of these findings are discussed.     

Smallholder Preferences for Agri‐environmental Change at the Bhoj Wetland,India

Incentive‐based approaches have gained policy interest in linking change in agricultural land management with environmental conservation. This article investigates how scheme design influences smallholder farmers' decisions to switch to organic farming to reduce water pollution, drawing on a study at a Ramsar wetland site providing water for the city of Bhopal. Results from a choice experiment suggest that transitional payments are necessary to overcome farmer constraints to adopt organic farming, and that effective land certification has the potential to act as a self‐enforcing mechanism linking farmer incomes with wetland conservation benefits.     

Inequality and Democratic Responsiveness

By allowing voters to choose among candidates with competingpolicy orientations and by providing incentives for incumbentsto shape policy in the direction the public desires, electionsare thought to provide the foundation that links governmentpolicy to the preferences of the governed. In this article Iexamine the extent to which the preference/policy link is biasedtoward the preferences of high-income Americans. Using an originaldata set of almost two thousand survey questions on proposedpolicy changes between 1981 and 2002, I find a moderately strongrelationship between what the public wants and what the governmentdoes, albeit with a strong bias toward the status quo. But Ialso find that when Americans with different income levels differin their policy preferences, actual policy outcomes stronglyreflect the preferences of the most affluent but bear virtuallyno relationship to the preferences of poor or middle-incomeAmericans. The vast discrepancy I find in government responsivenessto citizens with different incomes stands in stark contrastto the ideal of political equality that Americans hold dear.Although perfect political equality is an unrealistic goal,representational biases of this magnitude call into questionthe very democratic character of our society.     

Troubling Discourses of Poverty in Early Childhood in the UK

Poverty in early childhood is pervasive, affecting every aspect of children’s lives. Under current government policies child poverty in the UK is predicted to rise to 40 per cent by 2022. Dominant discourses of poverty have historically focussed on an over‐arching discourse of moral responsibility, essentially relating to notions of deserving and underserving poor. This paper examines how government policy continues to significantly impact on young children and families on low incomes in early childhood and how stigmatised discourses about welfare, work are pervasive. It is argued that discourses of redistribution and children’s rights deserve greater recognition if poverty is to be addressed.     

<Emphasis Type="Italic">Do jobs programs work?</Emphasis>: A review article

During the 109th Congress (2003–2004), policymakers in Washington plan to reauthorize the Workforce Investment Act of 1998, which is the primary authorization legislation for employment and training programs operated by the U.S. Department of Labor. The literature evaluating the effectiveness of federal employment and training programs casts considerable doubt on the ability of these programs to improve participants ' incomes. The policy debate is centered on procedural changes to the delivery of the same job training services that performed inadequately in the past. Thus, current reforms are hobbled by remnants of previously failed federal employment and tra in ing programs.     

The ‘myth’ of the family farm: Defining the family farm and assessing its importance in the European community

Family farming is a central but inadequately defined concept in the European Community's agricultural policy. An investigation into the importance of family farming is reported, using data from the European Community's Farm Accountancy Data Network that covers some 59,000 farms in the 12 Member States. A definition is adopted, based on the share of the labour provided by the family, to group farms into family, intermediate or non-family types. Almost three-quarters of Community farms were classed as family farms in 1989, but they produced only just over half of the total agricultural output and 62% of the total income. The incidence of family farming varied between countries and was lowest in the United Kingdom, where less than half fell into the family group. In all countries family farms tended to be smaller and to have lower incomes per person than non-family farms. However, the non-family group did not consist solely of larger farms operated by family labour supplemented by hired labour; at least in some countries the group contained smaller farms operated on a part-time basis and where there is substitution by hired labour for family labour. These subgroups point to alternative ways of structural adjustment to achieve higher incomes from farming.     

Analysing the effects of tax-benefit reforms on income distribution: a decomposition approach

To assess the impact of tax-benefit policy changes on income distribution over time, we suggest a methodology based on counterfactual tax-benefit simulations. Changes in inequality/poverty indices are decomposed into three contributions: changes in the tax-benefit structure, changes in nominal levels of market incomes and tax-benefit money parameters, and all other changes, including shifts in market income inequality and demographic composition. The policy effect can be evaluated conditionally on base-period data or end-period data; it is also possible to average the two measures, which corresponds to an application of the Shapley value method as reinterpreted by Shorrocks (Decomposition Procedures for Distributional Analysis: A Unified Framework Based on the Shapley Value, University of Essex and Institute for Fiscal Studies, Wivenhoe Park, 1999). The decomposition is used to quantify the relative role of policy changes on inequality/poverty trends in France and Ireland in the 1990s. When end-period data are not available, e.g., for forward looking analysis of possible reforms, the base weighted decomposition helps to extract an absolute measure of the impact of tax-benefit changes on income distribution as evaluated against a distributionally neutral benchmark; in our application, it is not significantly different from the policy effect stemming from the Shorrocks-Shapley decomposition. Estimates of this type are derived to assess recent policy changes in twelve European countries.     

The Welfare State and inequality in the 1980s

A travers une etude surtout du systeme de transferts fiscaux, nous tentons de comprendre le r6le redistributeur de 1'Etat canadien dans les annees contemporaines. Nous faisons l'inventaire des facteurs qui ont module la structure des politiques sociales diveloppee disle debut des annees soixante-dix. Nous evaluons les modes de pression majeurs au cows des dix dernikres annCes en vue d'un changement dans les outils de redistribution, pourensuite mesurer I'impact de ces pressions sur la substance des politiques sociales et surle r d e redistributeur de I'Etat. Dans notre article, nous identifions un mouvement evident vers une plus grande inCgalitC dans les revenus du marche. Cependant, aucune des pressions structurelles ou ideologiques recentes sur I'Etat indique clairement une attCnuation des buts redistributeurs; les reactions ont CtC plut6t multi-directionnelles et ont tendu vers un accroissement. Au milieu des annees quatre-vingts, les changements de politiques n'avaient pas vraiment altC:C I'impact global des systkmes de transferts fiscaux, qui continuaient i neutraliser I'inPgalitC croissante au niveau des revenus du marche, suite i la plus profonde crise Cconomique des dernikres decennies. On est force de conclure quetoute interpretation des politiques sociales comme instruments de stabilite socio-politique a encore force de loi au Canada. This paper examines the redistributive role of the Canadian state in the contemporary period, focussing in particular on the tax-transfer system. The paper surveys the factors that shaped the structure of social policy that had developed by the early 19705, examines the major pressures for change in redistributive instruments during the last ten years, and then analyses the impact of those pressures on both the substance of social policy and the overall redistributive role of the state. The paper identifies clear movement towards greater inequality in market incomes. However, none of the structural or ideological pressures on the state in recent years points unambiguously towards a dramatic retreat from redistributive goals, and the policy response has tended to be multi-directional and for the most part incremental. At the mid-point of the 19805, policy changes had not significantly altered the overall impact of the tax-transfer system, which continued largely to neutralize the growing inequality in market incomes inherent in the deepest economic crisis in over four decades. This evidence suggests that interpretations of social policy as an instrument of social and political stability in Canada retain considerable force.     

Urban Aboriginal use of fringe financial institutions: Survey evidence from Prince George, British Columbia

This paper analyses the use of fringe financial institutions (FFIs), such as payday loan and check cashing providers, by urban Aboriginal people based on a survey undertaken in Prince George, British Columbia. We found that 60% of FFIs’ clients surveyed self-identified as Aboriginal. Their characteristics, compared to the non-Aboriginal FFI clients, included having lower average incomes, lower levels of education, more likely to be female, a higher incidence of being unemployed, higher levels of financial exclusion, and less satisfaction with the service provided by FFIs. We find that government policy towards regulating the FFI industry is inadequate for meeting the basic financial needs of urban Aboriginal people.     

Putting measures of individual well-being to use for ex-ante policy evaluation

Most studies using microsimulation techniques have considered the effect of potential reforms on the income distribution. However, it has become increasingly recognized, both at the academic and political level, that focusing purely on income provides a limited picture of social progress. We illustrate how ex-ante policy evaluation can be performed in terms of richer concepts of individual well-being, such as subjective life satisfaction and equivalent incomes. Our analysis makes use of EUROMOD, the EU-wide tax-benefit microsimulation model, along with 2013 EU-SILC data for Sweden, which for the first time provides information on life satisfaction. Our results show that the effect of potential reforms varies widely depending on the well-being concept used in the evaluation. We discuss the normative questions that are raised by this finding.     

Africa's Rising Demand for Wheat: Trends,Drivers, and Policy Implications

This article analyses trends in wheat consumption and imports in sub‐Saharan Africa since 1980, and estimates the economic and demographic determinants of this rising demand for wheat. Results point to rising incomes, growing populations, and increasing women's labour‐force participation as key drivers. Urban wheat‐expenditure shares generally exceed rural ones and SSA's demand is met largely by imports and partly through domestic production on large‐scale farms. Rising demand may therefore entail few farm–non‐farm synergies and minimal prospects to spur broad‐based economic development. The article concludes by discussing policy options for African countries to meet their staple food needs while also promoting pro‐poor agricultural growth.     

Farmer producer organizations as farmer collectives: A case study from India

Small and marginal farmers in India have been vulnerable to risks in agricultural production. Several organizational prototypes are emerging to integrate them into the value chain with the objective of enhancing incomes and reducing transaction costs. Among these are Farmer Producer Organizations (FPOs). We explore the potential of FPOs as collective institutions through a case study of Avirat, one of the first FPOs in Gujarat. Our analysis suggests that FPOs have the potential to provide benefits through effective collective action. The main challenge, however, is to raise sufficient capital to maximize these benefits. We discuss the implications of our findings to policy.     

Economic consequences of marital dissolution for blacks

Paying particular attention to the economic impact of post-divorce on black survey respondents of both sexes, "this study analyzes Weitzman's suggestion that men and women lose economic well-being in the first year after divorce. Family incomes of divorced women and men are compared with [those of] their married counterparts for five SES [socioeconomic status] categories. Using t-tests, it was found that, for most categories, for both genders, incomes of divorced persons were lower than incomes of married persons. Family incomes were regressed against a set of four control variables and a marital status variable. The marital status variable was statistically significant for four of the five SES categories for females. This was not true for males. Policy implications are considered." The geographical focus is on the United States.