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Farm Income Variability and the Supply of Off-Farm Labor by Limited-Resource Farmers

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Author Info

  • Vergara, Oscar
  • Coble, Keith H.
  • Patrick, George F.
  • Knight, Thomas O.
  • Baquet, Alan E.

Abstract

We study the relationship between the off-farm labor decision and the limited-resource farmers’ and spouses’ off-farm experience, education, and sources of income. We found that farmers’ and spouses’ off-farm experience and wages are significant factors in explaining the off-farm labor supply decision. Contrary to expectations, farm income variability is not significant in the farmers’ and spouses’ decision to see off-farm work. The off-farm labor supply of farmers and their spouses is negatively correlated with income transfers from the government. It was also found that the spouse is a residual supplier of on-farm and off-farm labor.

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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 02 (August)
Pages:

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Handle: RePEc:ags:joaaec:43394

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: farm income variability; limited-resource farmer; off-farm work; Tobit regression; C34; D19; D81; J15; Q18;

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References

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  1. A Corsi & JL Findeis, 2000. "True state dependence and heterogeneity in off-farm labour participation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(2), pages 127-151, June.
  2. Mishra, Ashok K. & Holthausen, Duncan M., 2002. "Effect of Farm Income and Off-Farm Wage Variability on Off-Farm Labor Supply," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(2), October.
  3. Johnson, James D. & Perry, Janet E. & Korb, Penelope J. & Sommer, Judith E. & Ryan, James T. & Green, Robert C. & Durst, Ron L. & Monke, James D., 2001. "Structural and Financial Characteristics of U.S. Farms: 2001 Family Farm Report," Agricultural Information Bulletins 33707, United States Department of Agriculture, Economic Research Service.
  4. Mishra, Ashok K. & El-Osta, Hisham S. & Morehart, Mitchell J. & Johnson, James D. & Hopkins, Jeffrey W., 2002. "Income, Wealth, And The Economic Well-Being Of Farm Households," Agricultural Economics Reports 33967, United States Department of Agriculture, Economic Research Service.
  5. Harwood, Joy L. & Heifner, Richard G. & Coble, Keith H. & Perry, Janet E. & Somwaru, Agapi, 1999. "Managing Risk in Farming: Concepts, Research, and Analysis," Agricultural Economics Reports 34081, United States Department of Agriculture, Economic Research Service.
  6. Barry K. Goodwin & Matthew T. Holt, 2002. "Parametric and Semiparametric Modeling of the Off-Farm Labor Supply of Agrarian Households in Transition Bulgaria," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 184-209.
  7. Dismukes, Robert & Harwood, Joy L. & Bentley, Susan E., 1997. "Characteristics and Risk Management Needs of Limited-Resource and Socially Disadvantaged Farmers," Agricultural Information Bulletins 33622, United States Department of Agriculture, Economic Research Service.
  8. Oluwole, Adetokunbo B. & Findeis, Jill L., 2001. "An Econometric Analysis Of Off-Farm Labor Participation Among U.S. Farm Families, 1977-1998," 2001 Annual meeting, August 5-8, Chicago, IL 20514, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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