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Determinants of non-farm labour participation rates among farmers in Australia

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Author Info

  • Lim-Applegate, Hazel
  • Rodriguez, Gil
  • Olfert, M. Rose
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    Abstract

    In recent decades, non‐farm employment has become prevalent and an important source of income for Australian farm families. However, models identifying the relative significance of the socioeconomic variables influencing non‐farm employment participation rates have never been estimated in Australia. In this paper, a bivariate probit model of non‐farm employment participation rates was estimated, using information from the Australian Bureau of Agricultural Resource Economics (ABARE) 1994–1995 surveys. It was found that the participation decision of the farm operator and spouse is likely to be jointly determined, that non‐farm employment participation increased at a declining rate with age among farmers and that university education enhances the participation rates particularly among spouses. Participation rates were also higher among spouses with lower other income and with no dependent children.

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 46 (2002)
    Issue (Month): 1 (March)
    Pages:

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    Handle: RePEc:ags:aareaj:118071

    Contact details of provider:
    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
    Phone: 0409 032 338
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    Web page: http://www.aares.info
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    Related research

    Keywords: Farm Management;

    References

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    1. Robinson, Chris & McMahon, Pat J. & Quiggin, John C., 1982. "Labour Supply And Off-Farm Work By Farmers: Theory And Estimation," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(01), April.
    2. Dora L. Costa, 2000. "From Mill Town to Board Room: The Rise of Women's Paid Labor," NBER Working Papers 7608, National Bureau of Economic Research, Inc.
    3. S. Martin & F. McLeay, 1998. "The Diversity of Farmers' Risk Management Strategies in a Deregulated New Zealand Environment," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 218-233.
    4. Menno Pradhan & Arthur Van Soest, 1997. "Household Labor Supply In Urban Areas Of Bolivia," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 300-310, May.
    5. Alfons Weersink, 1992. "Off-farm Labor Decisions by Ontario Swine Producers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(2), pages 235-251, 07.
    6. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
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    Citations

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    Cited by:
    1. Chang, Hung-Hao & Boisvert, Richard N., 2009. "Does Participation in the Conservation Reserve Program and/or Off-Farm Work Affect the Level and Distribution of Farm Household Income?," Working Papers 57035, Cornell University, Department of Applied Economics and Management.
    2. Roslan ABDUL-HAKIM & Siti Hadijah CHE-MAT, 2011. "Determinants of Farmers Participation in Off-Farm Employment: A Case Study in Kedah Darul Aman, Malaysia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 1(2), pages 27-37, December.
    3. Boisvert, Richard N. & Chang, Hung-Hao, 2006. "Does Participation in the Conservation Reserve Program and Off-Farm Work Affect the Level and Distribution of Farm Household Incomes?," 2006 Annual meeting, July 23-26, Long Beach, CA 21277, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Chang, Hung-Hao & Mishra, Ashok, 2008. "Impact of off-farm labor supply on food expenditures of the farm household," Food Policy, Elsevier, vol. 33(6), pages 657-664, December.
    5. Peter Howley & Emma Dillon & Thia Hennessy, 2014. "It’s not all about the money: understanding farmers’ labor allocation choices," Agriculture and Human Values, Springer, vol. 31(2), pages 261-271, June.
    6. Dil Bahadur Rahut & Maja Micevska Scharf, 2012. "Livelihood diversification strategies in the Himalayas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 558-582, October.

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