Hourly Earnings

Labour compensation is the remuneration allocated to the entrepreneurial family’s labour, calculated by deducting the interest claim on equity capital from agricultural income. Dividing this compensation by the family’s hours worked results in hourly earnings.

These income measures can be used to compare the income of agricultural entrepreneurs with that of wage earners. When examining these indicators, it should be noted that the return on equity has already been accounted for in accordance with the calculated interest claim.