Agricultural Labor Productivity Research Articles

Why did agriculture's share of Australian gross domestic product not decline for a century?

AbstractThe agricultural sector's share of gross domestic product (GDP) in growing economies typically declines but, for a century from the early 1850s, Australia's did not. Drawing on recent structural transformation literature, this paper seeks explanations for this unusual phenomenon, which is all the more striking because agriculture's share of employment continued to decline throughout and growth in manufacturing was being stimulated by tariff protection from imports. Several factors contributed, including a huge land frontier that took more than a century for settlers to explore, rapid declines in initially crippling domestic and ocean trade costs for farm products, the absence of a need to do any processing of the two main exports during that period (gold and wool) and innovations by farmers and via a strong public agricultural R&D system that contributed to farm labour productivity nearly doubling over those 10 decades. The ban on iron ore exports from 1938 and low export prices for fuels, minerals and metals during the two world wars and in the intervening decades also contributed.

How does transport development contribute to rural income in China? Evidence from county-level analysis using structural equation model

Transport development has often been regarded as a solution for increasing rural income. However, most existing studies focusing on the promotion effects of transport development on rural income fail to provide quantitative analysis of its influencing pathways. This study investigates the pathways linking county-level transport development to rural income in China. We first examined the spatial pattern of transport development, including density, proximity, and accessibility, in all Chinese counties from 2014 to 2019. Then, we analyzed both the association and influencing pathways between transport development and rural income using structural equation modeling (SEM). Finally, we compared the various effects and pathways among counties with different terrains, geographical locations, and poverty conditions through multigroup SEM analysis. The results suggest that transport development is associated with an increase in rural residents’ income primarily through the pathways of increasing nonfarm employment ratios, improving agricultural labor productivity efficiency, boosting urbanization rates, and enhancing access to basic public services. The most significant pathways through which transport development contributes to rural income growth in China are changes in nonfarm employment ratios and urbanization rates. The impact of transport development on rural incomes is more pronounced for counties in plain areas than counties in hilly and mountainous areas, more substantial in eastern counties than in central and western counties, and more pronounced in non-poverty-stricken counties than poverty-stricken ones. It is argued that transport alone cannot lead to significant rural revitalization in rural China; it must be accompanied by industrial development strategies.

Convergence Processes in the European Agriculture: Analysis of the Total Factor of Productivity

The article explored labour productivity in agriculture and carried out a comparative analysis of the achieved level of labour productivity in the countries of the European Union. The efficiency of agricultural production needs to be measured to improve the productivity, competitiveness, and profitability of farms. The multifactorial total factor productivity (MFP) of agricultural production evaluates the main and additional sources of economic growth in the agricultural sector. Based on the analysis of beta convergence, we observe an increase in total factor productivity (TFP) in Slovakia and the countries of the European Union. Based on the obtained statistically significant regression analysis models, beta convergence and sigma divergence of the TFP of the agricultural sector in the EU and Slovakia were identified. Thus, the process of positive convergence was confirmed, which indicates the convergence of the economic development of Slovakia with highly developed countries and the reduction of disparities between countries. State support and investment in innovative technologies will stimulate the adoption of new technologies and at the same time ensure technological progress and improve the impact of agriculture on the environment. We also concluded that it is important to improve the skills of those working in the agricultural sector, and as a result, an increase in TFP is expected.

Determinants of Agricultural Income to Promote Economic Sustainability in Indonesia

Indonesia is an agricultural country where most of the population works as farmers. The share of the agricultural sector in Gross Domestic Product (GDP) ranks third, with an average informal sector employment of 88.34% in the last five years. This study aims to analyze the factors that influence the contribution of the agriculture sector to economic sustainability growth, proxied by national income, in the short and long run through the Error Correction Model (ECM) regression analysis tool with time series data of Indonesia for the 1991 – 2020 period through four independent variables; arable land, agricultural machinery, GDP growth per capita, and labor productivity of the agricultural sector. The results showed that Arable Land has a positive effect on Agricultural Income, significant in the long run but insignificant in the short run. Agricultural Machinery and Labor Productivity have a significant positive effect both in the short and long run. Then, the GDP per capita growth has a significant negative effect in the short and long run. From the results of the research, several policy recommendations have been compiled for the advancement of the agricultural sector in Indonesia, one of them is the intensification of machinery utilization.

Does economic agglomeration affect the sustainable intensification of cultivated land use? Evidence from China

The sustainable intensification (SI) of cultivated land use (CLU) is important for achieving global sustainable development goals (SDGs). However, in the rapid advancement of agglomeration economies, it remains unclear whether economic agglomeration (EA) affects SI. Combined with emergy theory, this study utilized socioeconomic and natural environment data from 31 provincial administrative regions from 1990 to 2017 to evaluate the SI level in China. It further analyzed the impact of EA on SI using a spatial econometric model that includes mediating effects. The results showed that the EA level in China continued to rise, whereas the SI level continued to decline from 1990 to 2017. The mediating effect analysis showed that fiscal support for agriculture and agricultural labor productivity have a suppression effect of |−4.186|% and |−2.002|% in the local region, while cultivated land-use intensity has partial mediation of 6.350% in the local region; and agricultural labor productivity has a suppression effect of |−4.680|% on the surrounding region, while cultivated land-use intensity has stronger partial mediation relative to the local region, even up to 10.402% on surrounding regions. This implies that the impact of EA on SI involves complex paths and spatial differences. This study provides a better understanding of the reasons for the continuous decline in the SI in agglomeration-type economic development and feasible policy proposals.

Sustainable Development between Demonstration Farm and Agricultural Labor Productivity: Evidence from Family Farms in the Mountainous Area of Western China

Agricultural labor productivity is an important indicator that reflects the sustainable development of agriculture and rural areas. Demonstration farms provide an important link between small-scale farmers and modern agriculture in mountainous area of western China, which is playing an important role in improving labor productivity. This paper focuses on using the PSM-logit model and sensitivity analysis to empirically test the causal relationship between demonstration farms and labor productivity, and a micro-large sample of 1823 family farms was adopted. The highlighted findings are as follows: the average labor productivity of the demonstration farm is 2.8 times higher than that of the non-demonstration farm. There is a significant positive correlation between demonstration farms and labor productivity. Utilizing demonstration farms, when all control variables are added, can remarkably promote farm income by CNY301458 on average. In the matched sample, and under scenarios controlling for other covariates, we saw that demonstration farms can significantly enhance the farm income of CNY285108, CNY288509, and CNY291077 on average, respectively, after taking the radius matching, the kernel matching, and the nearest neighbor matching. The research inspired us to enhance the demonstrative establishment of family farms and accelerate the rate at which comprehensive development benefits are derived from demonstration farms. The results of this research could provide a policy reference for the promotion of high-quality development and the sustainable development of family farms in China and serve as an experience reference for promoting sustainable development of agriculture and rural areas globally.

Input Utilization and Agricultural Labor Productivity: A Gender Analysis (lay summary)

Input Utilization and Agricultural Labor Productivity: A Gender Analysis (lay summary)

Rural Population Aging, Capital Deepening, and Agricultural Labor Productivity

Whether the aging of rural population will affect the high-quality development of China’s agriculture is an important issue facing the construction of China’s characteristic modern agriculture. Using panel data from 30 provinces in China from 1999 to 2020, this paper used fixed effects models and mediation models for econometric regressions to explore the relationship between rural population aging and agricultural development, as well as the intermediate mechanisms involved. The study found that there was a positive relationship between rural population aging and agricultural labor productivity, and aging can stimulate agricultural development. Mechanism analysis revealed that rural population aging can promote the adjustment of the structure of agricultural factors, drive the deepening accumulation of capital and other factors, promote the modernization of agricultural production methods, and ultimately achieve an increase in agricultural labor productivity. Further examination showed that the positive relationship between rural population aging and agricultural productivity gradually weakened as the degree of rural population aging deepened. The study provides empirical evidence for sustainable agricultural development in the context of population aging.

Agricultural Vulnerability to Climate Change: A Critical Review of Evolving Assessment Approaches

The cumulative negative effects of climate change make agriculture increasingly vulnerable, with severe food security challenges, especially for developing nations. A robust research approach and a logical methodical framework can holistically assess the occurrence and intensity of agricultural vulnerability in a bid to strategize mitigation measures. This paper includes an in-depth review of the existing body of literature on agricultural risk and vulnerability, apart from recent studies and metric measurements of vulnerability having an emphasis on agriculture. Unlike the high priority on climate indicators in the past, contemporary research is progressively comprehensive and multidisciplinary where socioeconomic factors are integrated to make the assessment all-encompassing. Though this review paper found six major types of methodologies, the current vulnerability studies are predominantly index-based experiments adapted from the IPCC vulnerability concept. However, there is considerable variation across experiments concerning vulnerability conceptualization, selection of indicators, weight assignment and indexing techniques. Majority of the indexes encapsulate expert-recommended variables under sensitivity, exposure, and adaptive capacity. Such index-based measurements describe and compare vulnerability over space and time in order to formulate actionable policy measures. Uniform and robust techniques in indicator selection and statistically tenable weight allocation should be pursued in future research. To make the index highly representative and validated, the inadequacy of community perception should be minimized through the integration of PRA techniques within the experimental framework. Emerging threats such as loss of labour productivity in agriculture should be included in the analysis. The components of vulnerability also need to be analysed to comprehend their individual share in overall vulnerability for well-targeted mitigation measures. Constraints of data insufficiency required for vulnerability studies need attention for quality vulnerability research in the future. With such set priorities and focus, future research outcomes in vulnerability evaluation should be more meaningful and policy-focused.

Comparing the effect of climate change on agricultural competitiveness in developing and developed countries

Climate change and agriculture are inextricably linked and influence one another. Many studies have been conducted on the topic, but none have focused on developing and developed countries. This study aims to investigate the relationship between climate change and agricultural competitiveness in developing and developed countries. This study examined data from 71 developing countries and 24 developed countries from 1990 to 2020 used the three-stage least squares method. This study found that agricultural competitiveness raises temperatures in developing countries while decreasing temperatures in developed countries. The temperature change has the same effect in developing and developed countries, namely reducing the agricultural competitiveness. However, agricultural competitiveness in developed countries is more sensitive to temperature changes. Other explanatory variables have varying effects on temperature and agricultural competitiveness. We propose the use of technology in agricultural business management, as well as each country's commitment to increase agricultural competitiveness while manage rise in temperatures. Every country must also make efforts to maintain currency stability, be prudent in dealing with economic openness, increase agricultural labor productivity, and improve agricultural business actors' education.

LAND AND LABOR EFFICIENCY CHANGES IN POLISH AGRICULTURE IN REGIONAL TERMS

In Poland, there is a significant diversification of efficiency in agriculture between voivodeships. Therefore, we expect efficiency convergence in line with the modernization process of agriculture in regions. The work aims to identify the scale and direction of changes in the efficiency of land and labor in farms in Poland in terms of voivodeships and to determine whether there is a convergence of the efficiency. Statistical data from Statistics Poland and data from the FADN on the results of farms for the years 2010-2020 were used in the analysis. In the period covered by the analysis, the average area of farms increased by 18% to 11.6 ha, and the level of employment decreased by as much as 31% to 9.5 AWU/100 ha. On FADN farms, the area increased by 15% to 40.4 ha, and the level of employment decreased by 10% to 4.9 AWU/100 ha. Land efficiency did not change significantly in real terms, and labor efficiency increased by 15-18% in real terms, depending on the region. It was found that the convergence between voivodeships occurred only concerning labor productivity in agriculture (in value of GVA/AWU). Convergence was not confirmed for labor productivity (in value of production/AWU), and divergence was observed both for land efficiency and productivity. This means that differences in the effectiveness of Polish agriculture between regions are permanent, and progress in agriculture by regions is at a similar pace. In the future, the main constraint on agriculture development in some regions will be the strong fragmentation of agriculture.

Agricultural input subsidies, extension services, and farm labour productivity nexus: Evidence from maize farmers in Tanzania

AbstractThis paper examines the effect of agricultural input subsidies (AIS) and agricultural extension services (AES) on farm labour productivity in plots planted with maize in Tanzania, using panel data from the National Panel Survey in Tanzania. To control for the endogeneity of the two programmes, a control function and instrumental variable approach is used to estimate the effects of AIS and AES on farm labour productivity. The results show that AIS and AES are significant in raising labour productivity in maize‐planted plots. Similarly, AIS and AES are also effective in increasing land productivity in these plots. Moreover, each programme has comparable effects on land productivity and farm labour productivity. These findings imply that public investments in AIS and AES are effective in raising farm productivity.

THE INFLUENCE OF SOCIO-ECONOMIC FACTORS OF MOTIVATION ON LABOR PRODUCTIVITY IN THE EFFECTIVE AGRIBUSINESS SYSTEM

The article examines the impact of labor productivity on the development of agriculture. It was established that labor productivity is the main lever for creating additional value and a source of economic growth of agricultural production. An assessment of the achieved level of labor productivity in the agriculture of Ukraine was carried out on the basis of economic and statistical analysis. The monitoring of wage dynamics as the main socioeconomic factor of increasing the productivity of agricultural labor was carried out. A comparative analysis of the rate of increase in labor productivity and the rate of growth of its payment was done. The obtained results made it possible to reveal the presence of disproportions in the agrarian sphere of Ukraine between these indicators. A comparative assessment of the level of labor productivity in domestic agriculture and EU countries proved that the rate of growth of agricultural labor productivity in Ukraine is significantly behind the average European indicators. A set of socio-economic motivators for increasing labor productivity in agricultural production is substantiated on the basis of the research results. It was established that remuneration systems for hired labor remain the main socioeconomic factor stimulating the growth of labor productivity in agrarian business. At the same time, a set of socio-economic motivators, which, in addition to wages, can be effective in stimulating the growth of agricultural labor productivity has been determined. Among the key motivators, the following ones are proposed for use in the modern HR policy of agrarian formations: opportunities for professional development of personnel, opportunities for employees to influence making important management decisions, increasing the prestige of agricultural work, appreciation and self-realization of workers. It was determined that the principles of sustainable development and the elimination of inclusive gaps in the industry should be an important prerequisite for increasing labor productivity in the agricultural economy of Ukraine.

Ageing threatens sustainability of smallholder farming in China.

Rapid demographic ageing substantially affects socioeconomic development1-4 and presents considerable challenges for food security and agricultural sustainability5-8, which have so far not been well understood. Here, by using data from more than 15,000 rural households with crops but no livestock across China, we show that rural population ageing reduced farm size by 4% through transferring cropland ownership and land abandonment (approximately 4 million hectares) in 2019, taking the population age structure in 1990 as a benchmark. These changes led to a reduction of agricultural inputs, including chemical fertilizers, manure and machinery, which decreased agricultural output and labour productivity by 5% and 4%, respectively, further lowering farmers' income by 15%. Meanwhile, fertilizer loss increased by 3%, resulting in higher pollutant emissions to the environment. In new farming models, such as cooperative farming, farms tend to be larger and operated by younger farmers, who have a higher average education level, hence improving agricultural management. By encouraging the transition to new farming models, the negative consequences of ageing can be reversed. Agricultural input, farm size and farmer's income would grow by approximately 14%, 20% and 26%, respectively, and fertilizer loss would reduce by 4% in 2100 compared with that in 2020. This suggests that management of rural ageing will contribute to a comprehensive transformation of smallholder farming to sustainable agriculture in China.

Analyzing the land and labour productivity of farms producing renewable energy: the Italian case study

The paper computes and analyses some relevant indicators of economic performance of Italian farms producing/not producing renewable energy, and compares the economic results of the two set of farms. The source of data is the European Farm Accountant Data Network; the farms belonging to this network are analysed in relation to their structural differences, type of farming, geographical areas, economic size, as well as the type of renewable energy produced. After an in-depth statistical investigation, the main economic ratios are computed and analysed using also multivariate regression models, with a special focus on the production of solar and biogas energy. In terms of land and labour productivity and fixed factor remuneration, the results show that farms producing renewable energy perform better than the other farms. This positive effect is particularly accentuated in large companies that produce biogas, followed by farms that produce solar energy. There are still many obstacles that limit the production of renewable energy in agriculture; among these, still insufficient research and information on best practices in agriculture and, in Italy, the complexity and dispersion of the institutional legislative framework and of the public support systems. However, the need to increase the production of renewable energy has become a priority for many European countries both in the short- and in the medium term, especially in light of recent events related to the war in Ukraine.

Regional Diversity and Evolution of Agricultural Labor Productivity in China

Analyzing the regional diversity and convergence of agricultural labor productivity is an important step in investigating this aspect of the economy. To enhance urban–rural integration, the Gini coefficient and kernel density estimation methods are used to examine regional agricultural labor productivity in China. The overall regional diversity in agricultural labor productivity is found to be expanding, with regional differences being the primary source of the overall disparity. Agricultural labor productivity in China has continued to improve over the period considered in this study. The gap between agricultural labor productivity in the eastern and western regions is found to be lower than that between the eastern and central regions and the western and central regions. Although there is no σ-convergence to agricultural labor productivity in China, both absolute and conditional β-convergence are observed. A spatial lag model indicates that agricultural labor productivity has a significant positive spillover effect. GDP per capita and the level of marketization make significant contributions to the convergence of agricultural labor productivity, and the level of industrialization significantly reduces the agricultural labor productivity gap.

Labor productivity in livestock enterprises of Ukraine

Labor productivity is one of the leading indicators of the efficiency of the functioning of enterprises and an indicator of technological development. The level of labor productivity is characterized by the volume of products produced in terms of value or in kind per employee or unit of time spent. In addition, when evaluating the efficiency of labor use, the inverse of labor productivity is used as the indicator of the labor intensity of products, which shows the time spent on the production of a unit of volume or value of products. The article analyzes labor productivity in agricultural enterprises, particularly the livestock industry of Ukraine, for 2010-2020 per 1 employee, in constant prices of 2016. Labor productivity in livestock enterprises by region of Ukraine is studied. The ratio of labor productivity per 1 worker in animal husbandry to the average salary in agriculture per year was determined. The estimated specific weight of labor remuneration with deductions from the cost of produced products in livestock enterprises, as well as the average labor intensity of livestock production by regions of Ukraine in 2020, was calculated. According to the results of the study, it was established that the productivity of labor in the enterprises of the livestock industry during the studied period is growing steadily and, according to the results of 2020, reached UAH 873,000. Based on one employee per year at constant prices of 2016, which is 20,000 hryvnias. More than in crop production. The highest level of labor productivity among livestock enterprises is observed in the Vinnytsia region - at the level of UAH 3.1 million per 1 employee per year. The average indicator of labor intensity in livestock breeding in Ukraine was 2.2 hours per 1 thousand hryvnias cost of products. In enterprises of the Lviv region, this indicator is 10 % lower than the average in Ukraine. The growth of labor productivity in animal husbandry and agriculture primarily leads to a disproportionate change in wages, the specific weight of which in the value of manufactured products grows relatively slower than the level of labor productivity. To increase the level of efficiency in the use of labor in animal husbandry, it is necessary to introduce innovative intensive, resource-saving technologies, increase the volume of production and sale of products, make maximum use of production facilities, mechanize and automate the process of animal breeding, and improve the quality of management.

Labor productivity in the agriculture, structural shifts and economic growth in the Central and Eastern European countries

Purpose. In our article, we assess the scope and directions of changes in agricultural labor productivity compared to other sectors of the economy.
 Methodology / approach. For our survey we choose 15 countries: (і) EU countries – Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, as well (іі) post-Soviet European countries – Ukraine, Moldova, Belarus, russia and also (ііі) Albania for period 1996–2019. We use an empirical methodology designed to analyze structural decomposition of labor productivity into the growth effect within the sector and structural dynamic and static effects, often called ‘shift-share analysis’. We analyze process of convergence of sectoral labor productivity and its impact on economic growth.
 Results. Labor productivity grows in the agricultural sector of the economy at the fastest rate, on average by almost 12 % per year. The growth effects within the industry takes a dominant position in all sectors of the economy in the countries of Central and Eastern Europe and its share is on average 88.5 %, and the structural effects are as follows: the dynamic effect is almost 1%, the static effect is 10.4 %. We have confirmed that the agricultural sector is gaining weight in the economic growth of the countries of Central and Eastern Europe, the influence of the service sector is increasing, although together they do not exceed the influence of the growth of value added in industry.
 Originality / scientific novelty. For the first time we have used the methodology of decomposition of labor productivity growth into three effects: growth, dynamic and static ones for the period before the financial crisis 2008 and after the crisis for 15 countries of Central and Eastern Europe. Using panel GLS estimator with fixed effects we estimate the impact of labor productivity on economic growth in different sectors for 1991–2020 period. 
 Practical value / implications. The main results of the study can be used for elaboration of effective economic policy in agriculture development in Central and Eastern European countries; for identification of structural shifts in labor productivity in different sectors of the economy before and after the financial crisis; for estimation of the level of convergence between different sectors of the economy; determining main factors of increasing value added in agriculture in Ukraine and other Central and Eastern European countries; implementation structural changes in economy in the period of crisis.

He said, she said: The impact of gender and marriage perceptions on self and proxy reporting of labor

The accurate estimation of agricultural employment and labor productivity are crucial in understanding opportunities for improvements in productivity and economic growth in developing countries. Available labor statistics mostly come from surveys in developing countries, which mostly rely on one person providing information about all household members. However, there are only a few empirical studies that provide a framework for understanding the potential advantages and disadvantages of using self and proxy reporters to collect such data. Using self and proxy reports from surveys in Ghana, we find significant differences in estimated labor productivity with very different implications in terms of policy-making. We find that differences in reporting are most likely due to gender and marriage satisfaction of both self and proxy reporters, so differences in reporting are due to bias and are not classical measurement error.

Feasibility analysis of hybrid corn farming in Karanganyar Regency

The productivity and price of hybrid corn in Karanganyar Regency are lower than the productivity and price of the surrounding districts, especially during the la Nina storm. This study aims to determine the feasibility of mixed corn farming in the Karanganyar Regency. Determining the location and sampling was done using the purposive sampling technique with 80 farmers as respondents. The data analysis method used was the farm Cost-income analysis, R/C ratio, BEP (Break-Even Point), Profitability-cost ratio, Labor productivity, and Sensitivity analysis. The average income was IDR 3,975,741 per farm or IDR 7,795,571 per hectare. The average cost calculated was IDR 1,930,362 per farm and 4,257,302 per hectare. The analysis of BEP, R/C ratio, the profitability-cost proportion, labour productivity and sensitivity showed that hybrid corn is feasiblethe profitability-cost proportion was more significant than the applicable bank interest. Labour productivity was greater than the prevailing labor wage. The sensitivity showed that hybrid corn farming was feasible under decreasing prices by up to 50%. Therefore, farmers still benefit from cultivating hybrid corn. However, the effect of La Nina will continue, so farmers must be more adaptive to excessive water and pest attacks on their land.