{"title":"The impact of modern agricultural development on wage inequality within rural areas","authors":"Xiaochun Li, Yuean Zhou","doi":"10.1111/ijet.12423","DOIUrl":null,"url":null,"abstract":"<p>Wage inequality within rural areas refers to the wage inequality between the modern and traditional agricultural sectors. In developing countries, the development of modern agriculture is an important factor affecting this inequality. This paper establishes a general equilibrium model to investigate this impact under the framework of labor transfer. We found that capital subsidy policies for modern agriculture will be conducive to expanding the scale of modern agriculture and narrowing wage inequality within rural areas. Conversely, wage subsidies for modern agriculture would widen wage inequality within rural areas, despite facilitating the transition of traditional agricultural labor into modern agriculture.</p>","PeriodicalId":44551,"journal":{"name":"International Journal of Economic Theory","volume":"21 2","pages":"201-220"},"PeriodicalIF":0.5000,"publicationDate":"2025-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Economic Theory","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/ijet.12423","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Wage inequality within rural areas refers to the wage inequality between the modern and traditional agricultural sectors. In developing countries, the development of modern agriculture is an important factor affecting this inequality. This paper establishes a general equilibrium model to investigate this impact under the framework of labor transfer. We found that capital subsidy policies for modern agriculture will be conducive to expanding the scale of modern agriculture and narrowing wage inequality within rural areas. Conversely, wage subsidies for modern agriculture would widen wage inequality within rural areas, despite facilitating the transition of traditional agricultural labor into modern agriculture.