IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/57625.html
   My bibliography  Save this article

Choice of Remuneration Regime in Fisheries: The Case of Hawaii’s Longline Fisheries

Author

Listed:
  • Nguyen, Quang
  • Leung, PingSun

Abstract

One of the most prominent features of remuneration in Hawaii’s longline fisheries industry has been the norm of share contract regimes. This paper investigates whether the use of the share contract regime is positively correlated to increased economic returns. The principal-agent framework is applied to develop a theoretical model for the remuneration choice. Empirical estimation is conducted using a switching regression model that accounts for the effects of certain vessel characteristics on revenue, depending on remuneration regime used (i.e., share contract or flat wage), as well as the potential selection bias in the vessels’ contractual choice. Key findings from counterfactual simulations indicate: (a) a negative selection related to choosing share contracts, and (b) flat wage vessels would experience significantly higher revenues if they switched to share contracts. Thus, even though the labor market in Hawaii’s longline fisheries relies upon foreign crew members, the results suggest that owners of flat wage vessels would benefit by applying share contracts to increase their revenues.

Suggested Citation

  • Nguyen, Quang & Leung, PingSun, 2009. "Choice of Remuneration Regime in Fisheries: The Case of Hawaii’s Longline Fisheries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-20, December.
    • Handle: RePEc:ags:jlaare:57625
    DOI: 10.22004/ag.econ.57625
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/57625/files/JARE_Dec09__010Fpp498-517.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.57625?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Matthiasson, Thorolfur, 1999. "Cost sharing and catch sharing," Journal of Development Economics, Elsevier, vol. 58(1), pages 25-44, February.
    2. FitzRoy, Felix R & Kraft, Kornelius, 1986. "Profitability and Profit-Sharing," Journal of Industrial Economics, Wiley Blackwell, vol. 35(2), pages 113-130, December.
    3. Nigel Key & William McBride, 2003. "Production Contracts and Productivity in the U.S. Hog Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 121-133.
    4. McConnell, Kenneth E. & Price, Michael, 2006. "The lay system in commercial fisheries: Origin and implications," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 295-307, May.
    5. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
    6. Thorolfur Matthiasson, 1997. "Fixed wage or share: Contingent contract renewal and skipper motivation," Labor and Demography 9702002, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leif Sörensen & Jan Schlüter, 2021. "How do contract types and incentives influence driver behavior?−An analysis of the Kigali bus network," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-11, December.
    2. Jensen, Frank & Nøstbakken, Linda, 2016. "A corporate-crime perspective on fisheries: liability rules and non-compliance," Environment and Development Economics, Cambridge University Press, vol. 21(3), pages 371-392, June.
    3. Gary Charness & David Masclet & Marie Claire Villeval, 2014. "The Dark Side of Competition for Status (preprint)," Working Papers halshs-01090241, HAL.
    4. Gary Charness & David Masclet & Marie Claire Villeval, 2014. "The Dark Side of Competition for Status," Management Science, INFORMS, vol. 60(1), pages 38-55, January.
    5. César Salazar Espinoza, 2015. "Share Contract Choices and Economic Performance: Empirical Evidence from the Artisanal Fisheries Sector in Chile," Marine Resource Economics, University of Chicago Press, vol. 30(1), pages 71-95.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alvin Slewion Jueseah & Dadi Mar Kristofersson & Tumi Tómasson & Ogmundur Knutsson, 2020. "A Bio-Economic Analysis of the Liberian Coastal Fisheries," Sustainability, MDPI, vol. 12(23), pages 1-21, November.
    2. Thorolfur Matthiasson, 1997. "Fixed wage or share: Contingent contract renewal and skipper motivation," Labor and Demography 9702002, University Library of Munich, Germany.
    3. Jordi Guillen & Claire Macher & Mathieu Merzéréaud & Jean Boncoeur & Olivier Guyader, 2015. "Effects of the Share Remuneration System on Fisheries Management Targets and Rent Distribution," Marine Resource Economics, University of Chicago Press, vol. 30(2), pages 123-138.
    4. Tambo, Justice A. & Wünscher, Tobias, 2016. "Beyond adoption: welfare effects of farmer innovation behavior in Ghana," Discussion Papers 235297, University of Bonn, Center for Development Research (ZEF).
    5. Sebastian Stępień & Jan Polcyn & Michał Borychowski, 2021. "Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 56-86.
    6. Franken, Jason R.V. & Parcell, Joseph L., 2012. "Evaluation of Market Thinness for Hogs and Pork," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(4), pages 1-16, November.
    7. Long, Richard J. & Fang, Tony, 2013. "Profit Sharing and Workplace Productivity: Does Teamwork Play a Role?," IZA Discussion Papers 7869, Institute of Labor Economics (IZA).
    8. Doris Läpple & Thia Hennessy & Carol Newman, 2013. "Quantifying the Economic Return to Participatory Extension Programmes in Ireland: an Endogenous Switching Regression Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 467-482, June.
    9. Francesco Daveri & Maria Laura Parisi, 2010. "Experience, Innovation and Productivity - Empirical Evidence from Italy's Slowdown," CESifo Working Paper Series 3123, CESifo.
    10. Liyan Yu & Jerker Nilsson & Feng Zhan & Song Cheng, 2023. "Social Capital in Cooperative Memberships and Farmers’ Access to Bank Credit–Evidence from Fujian, China," Agriculture, MDPI, vol. 13(2), pages 1-18, February.
    11. Bahta, Y. & Owusu-Sekyeer, E., 2018. "Nexus between homestead food garden programme and land ownership in South Africa: Implication on the income of vegetable farmers," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277732, International Association of Agricultural Economists.
    12. José Luis Ferreira & Roberts Waddle, 2010. "Strategic profit sharing between firms," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(4), pages 341-354, December.
    13. Aakvik, Arild & Holmås, Tor Helge & Kjerstad, Egil, 2012. "Hospital Capacity, Waiting Times and Sick Leave Duration - an Empirical Analysis of a Norwegian Health Policy Reform," Working Papers in Economics 10/12, University of Bergen, Department of Economics.
    14. Tanimonure, Victoria Adeyemi, 2021. "Impact of Climate Adaptation Strategies on the Net Farm Revenue of Underutilized Indigenous Vegetables’ (UIVs) Production in Southwest Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315903, International Association of Agricultural Economists.
    15. Han, Tzu-Shian & Shen, Chung-Hua, 2007. "The effects of bonus systems on firm performance in Taiwan's high-tech sector," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 235-249, March.
    16. Cadot, Olivier & Olarreaga, Marcelo & Dutoit, Laure, 2005. "How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?," CEPR Discussion Papers 5392, C.E.P.R. Discussion Papers.
    17. Akbar Marvasti & Sami Dakhlia, 2017. "Occupational Safety and the Shift from Common to Individual Fishing Quotas in the Gulf of Mexico," Southern Economic Journal, John Wiley & Sons, vol. 83(3), pages 705-720, January.
    18. Grimm, Michael & Hartwig, Renate & Lay, Jann, 2017. "Does forced solidarity hamper investment in small and micro enterprises?," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 827-846.
    19. Issahaku, Gazali & Abdulai, Awudu, "undated". "Adaptation to Climate Change and its influence on Household Welfare in Ghana," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259938, Agricultural and Applied Economics Association.
    20. Girma Gezimu Gebre & Yuichiro Amekawa & Asmiro Abeje Fikadu & Dil Bahadur Rahut, 2023. "Do climate change adaptation strategies improve farmers’ food security in Tanzania?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(3), pages 629-647, June.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:57625. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.