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Title: Why is measured productivity so low in agriculture?

Citation Type: Journal Article

Publication Year: 2015

ISSN: 10942025

DOI: 10.1016/j.red.2014.10.006

Abstract: 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.

Url: http://www.sciencedirect.com/science/article/pii/S1094202514000647

Url: https://linkinghub.elsevier.com/retrieve/pii/S1094202514000647

User Submitted?: No

Authors: Herrendorf, Berthold; Schoellman, Todd

Periodical (Full): Review of Economic Dynamics

Issue: 4

Volume: 18

Pages: 1003-1022

Data Collections: IPUMS International, IPUMS CPS

Topics: Labor Force and Occupational Structure, Land Use/Urban Organization, Natural Resource Management

Countries:

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