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A Comparison of the Economic Well-Being of Farm and Nonfarm Households

Ani L. Katchova
American Journal of Agricultural Economics
Vol. 90, No. 3 (Aug., 2008), pp. 733-747
Stable URL: http://www.jstor.org/stable/20492325
Page Count: 15
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A Comparison of the Economic Well-Being of Farm and Nonfarm Households
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Abstract

This study compares the economic well-being of farm and nonfarm households using data from the Agricultural Resource Management Survey and the Survey of Consumer Finances. Comparisons are made in terms of income and wealth using parametric and nonparametric tests, regression analyses, and inequality measures. The results show that the economic well-being of households differs based on their degree of involvement in business activities and their life-cycle stages. The main conclusion is that the income of rural residence and intermediate farms is comparable to that of wage-earning nonfarm households, while commercial farms are similar in well-being to nonfarm households with business.

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