Examination of Agricultural Income Inequality in the European Union

Abstract

The significant roles of agriculture in the economic development of a country are determinative. It has already made a substantial contribution to the economic prosperity of advanced countries. Its role in the economic development of less developed countries is of vital importance. The share of the population working in agriculture is declining as countries develop. While less than 5% of the population does in rich countries work in agriculture, more than two-thirds of the people in poor countries. It is predominantly the huge productivity increase that makes this reduction in labor possible. The aim of the study is to provide a comprehensive picture of the situation of agriculture in the European Union from 2010 to 2019, with a particular focus on agricultural income and labor force developments. The number of employed in agriculture has decreased globally (by almost -14%) and in the European Union (by nearly -19%). The added value of agriculture has grown at a similar rate worldwide (by almost +22%) and in the European Union (by almost +23%). Indicators of agricultural income showed indicator A an increase of 25.56%, indicator B 39.11% and index C 20.39% in 2017 compared to 2010. In 2019 the gross value added in agriculture was the most significant in Germany, Spain, France, and Italy. Together, the four countries accounted for 42% gross value added in agriculture of EU-28. Indicator A, B and C of agricultural income showed in 2019 the most significant positive change in Bulgaria, in Denmark and Romania. Employment in agriculture was the highest in Poland and Romania in 2019. Several reasons can explain the differences in the development of agricultural performance in each European Union country. These reasons can be grouped. On the one hand, the location varies from country to country. Due to their different locations, their climatic, natural and ecological conditions are different. Another important difference is the size of the states. On the other hand, the structure and organization of society are different. Thirdly, the economic situation and status of each country are different. Keywords: Agriculture, Labor, Income, Inequality, European Union.