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GTAP Resource #7325

"Employment and Job Quality in Agrifood Production"
by Corong, Erwin, Madhur Gautam, Will Martin, Marinos Tsigas and Rob Vos

During the process of economic development, the agrifood sector undergoes a profound structural adjustment from subsistence farming involving little more than the use of land and labor, to value chains involving, at minimum:
i) Farming inputs
ii) Agricultural production
iii) Food processing
iv) Transport services
v) Wholesale and retail trade
vi) Food services

In poor, agrarian economies, the agricultural sector provides a very large number of low-quality jobs for both men and women, with relatively few in upstream or downstream activities. Identifying the contributions of the agrifood sector to employment in middle and high-income countries is much more complex because employment is divided between sectors, some of which provide services to many other sectors. The planned approach in this paper is to draw on the important work on employment, wages, average wages and gender employment in the World Bank’s Gender Disaggregated Labor Database (GDLD).

We identify two broad approaches to measuring employment in agrifood. The first measures employment in agrifood activities. The second considers the factors used in producing and delivering agrifood goods to final demand. For the economy as a whole, these two approaches should generate the same amount of value added (or GDP) and employment. But for a subset of activities, this need not be the case. Preliminary estimates suggest that the value added and employment needed to deliver the observed quantity of final agrifood goods may be substantially greater than implied by measures based on factor use in agrifood activities.

Examination of the GDLD database reveals that there are huge differences in wage premia between agriculture and non-agricultural sectors in both developed and developing countries. These differences will have profound implications for the final estimates of employment and job quality in agrifood production currently being estimated.

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Created: Martin, W. (4/15/2024)
Updated: Batta, G. (4/15/2024)
Visits: 97
- GTAP Data Base and extensions
- Economic development
- Labor market issues

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