In a recent paper, Bardhan (1974) used Farm Management Studies data from four districts (Ferozepur in Punjab, Muzaffarnagar in UP, Hooghly in West Bengal, and Ahmednagar in Maharashtra) to compare income distribution in the mid-1950s with the distribution in the late 1960s. Using Farm Business Income, he finds that there is an unambiguous increase in inequality in Ahmednagar and an unambiguous decrease in inequality in Muzaffarnagar. For the other two districts, the Lorenz curves intersect and thus an evaluation of inequality requires explicit value judgments.1 However, using a Gini co-efficient (‘concentration ratio’), inequality of Farm Business Income has increased in all districts — except Muzaffarnagar. But, in contrast, using Gini co-efficients for Farm Size, he finds that inequality has increased marginally for Ferozepur and Ahmednagar, decreased marginally for Hooghly, and decreased for Muzaffarnagar. An interesting result is that, for all districts, the Gini co-efficient is higher for Farm Business Income (income inequality) than for Farm Size (wealth inequality). This latter result, he explains in terms of the economies of scale enjoyed by large farms.
KeywordsIncome Inequality Farm Size Lorenz Curve Green Revolution Large Farm
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