Abstract
Average wages are considerably lower in agriculture than in the other sectors. We document this fact for thirteen countries ranging from rich (Canada, U.S.) to poor (India, Indonesia). We develop a measure of human capital that accounts for the selection of workers with dierent unobserved skills into sectors. We nd that differences in human capital account for most of the wage gaps. We develop a model that rationalizes this nding and that allows us to quantify the distortions to the
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