농가소득 결정요인에 대한 실증분석: 인적 구성과 수익성의 변화

An Empirical Analysis on the Determinants of Farm Household Income: Changes in Demographic Composition and Profitability

This study empirically analyzes the determinants of the farm household income by decomposing the change in net income over 2005-2015 into two parts: one caused by the change in demographic composition and the other caused by the change in profitability through Oaxaca(1973)’s decomposition technique. Results based on census on agriculture, forest, and fishery and survey on farm household’s economic activity from Statistics Korea, net income has dropped by 4.32 million Won from 18.31 million Won in 2005 to 13.99 million Won in 2015. Approximately 28% of this drop attributed to the change in demographic composition of farm households, and the remaining 72% occurred due to the deterioration of their profitability. However, the analysis for 2010-2015 shows that the change in demographic composition which is indebted to the decrease in net income, 3.54 million Won by up to 51.7% is more influential than the fall of profitability. These findings imply that the change in net income during the first half of 2005-2015 was affected by severe competition partly owning to globalization (e. g., FTA) and that during the second half by ageing in rural areas and returning to farming of people who are unskillful to farming.