PHYSICAL VERSUS HUMAN CAPITAL FACTORS AFFECTING INCOME DISTRIBUTION AMONG THE FARMERS OF SAVEJBOLAGH TOWNSHIP, IRAN

Javad M. SADEGHI (Isfahan University of Technology)
M. TOODEHROOSTA (Isfahan University of Technology)

The purpose of this study was to investigate the effects of physical inputs as compared to human capital factors on the distribution of income of the farmers in Iran, for which Savejbolagh township located in the north of Iran was selected. The study utilized a cross-sectional data set embodied farm and household level data for 1998/99 agricultural year. The data was collected through personal interviews with 350 farmers of Savejbolagh. The farmers were selected by stratified random sampling. Savejbolagh included two distinct districts of lowland and upland. Among other descriptive information, Gini ratios for income and land distribution among the farmers were shown. Logit analysis was used to estimate the probable effects of physical inputs and the human capital factors on farmers to fall in the lowest income quintiles. The farmers' income included those earned from agricultural and non-agricultural sources. The results showed that assets such as owned land that were used for crops and fruit production and the owned animal units had statistically significant negative effects on farmers to fall into the poorest income quintile. Meanwhile, human capital factors such as education did not show statistically significant negative effect. Furthermore, the results showed differences between the two districts of low and upland.