Greek farm households: income inequality, poverty and distributional impact of farm income

Abstract

This paper examines the incidence of income inequality and poverty, and the impact of farm income on inequality. A detailed typology of farm households (FHs) is developed, based on Household Budget Survey micro-data. Research findings reveal enormous variations among households with respect to income inequality and poverty. While Marginal- and Pluriactive- FHs do not seem to have an income problem, this is not the case for Farm Households. Poverty is a widespread phenomenon among Retired FHs. Farm income and non-farm income generate a combined stabilization effect, mitigating the overall inequality within households. Policy implications of these findings are discussed in the context of welfare aspects of agricultural policy.