Who Gains from Agricultural Protection?
A previous chapter emphasized the particular problems that confront agriculture when economic growth occurs. Agriculture is a declining industry; when economic growth occurs it provides a declining percentage of total national employment opportunities for mobile resources, especially labour. Since it is necessary under these circumstances to transfer labour continuously 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 Land Rent Farm Labour
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Notes and References
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