Who Gains from Agricultural Protection?
A previous chapter emphasized the particular problems that confront agriculture when economic growth occurs. Agriculture is a declining industry; its share of national output and national employment declines as real per capita incomes increase. Since it is necessary under these circumstances continuously to transfer labour out of agriculture to other occupations, the return to farm labour will be less than the return to labour of similar education, skills and capacities engaged in other activities. At least this will be true in any economy in which decisions concerning choice of jobs is left to the individual; individuals do not voluntarily change jobs unless they anticipate a gain from doing so.
KeywordsWage Rate Farm Income Output Price Farm Labour Purchase Input
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Notes and References
- 2.Colin Clark, The Conditions of Economic Progress,, 2nd ed. (London: Macmillan, 1951). Data are given for five periods between 1860 and 1944. In the latter year land rent was 15 per cent of net product.Google Scholar