Are the incomes of agricultural households lagging behind? Evidence from Czechia

Abstract

The aim of this article is to compare the income of agricultural households with the income of other economically active households in Czechia and to determine the extent to which a difference can be explained by the difference in household characteristics. The research was carried out on the basis of the Czech SILC survey (2005-2016). To determine the level of poverty of agricultural households, we used the Foster-Greer-Thorbecke poverty measures. To decompose the income gap, we used Blinder-Oaxaca decomposition in the modification for longitudinal data. The incomes of agricultural workers are lower compared to other sectors, and this difference was also reflected in the equalised household incomes. Households differ in the poverty rate, but do not differ in the depth of poverty. The income gap can be explained by the difference in household characteristics of only 20%, with education and the type of occupation having the most significant influence.