Why is Measured Productivity so Low in Agriculture?

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5484

Classification and Topics

• Classification: Wirtschaft ; Economic Development: General
• Subject: mis-allocation of labor ; productivity gaps ; wage gaps

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Herrendorf, Berthold ; Schoellman, Todd
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/123128
• Last update: 10.03.2025, 11:44 AM CET