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Intertemporal analysis of employment decisions on agricultural holdings in Slovenia

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  • Luka Juvančič
  • Emil Erjavec

Abstract

The article attempts to quantify determinants influencing the dynamics of employment decisions on agricultural holdings in Slovenia and to test specific aspects of labor reallocation during the transition period by the application of an agricultural household model. Through the use of a 1991-2000 longitudinal data set for 22,055 farm households, quantitative analysis of intertemporal employment decisions by farm holders is carried out using probit techniques. The determinants tested relate to the personal characteristics of farm holders (gender, age, education level, and potential off-farm income), household characteristics (size, structure), characteristics of the agricultural holding (economic size, labor intensity), and local labor market conditions. The model results generally confirm existing empirical evidence on asymmetrical and irreversible participation of holders on the labor market. Despite intensive restructuring of agriculture and profound changes in the nonfarm labor market in the analyzed period, labor supply of farm holders remains rigid. The mobility of labor supply is lower than expected, which can be attributed to the importance of structural problems constraining intersectoral mobility. Low labor mobility reduces the efficiency of labor allocation on agricultural holdings in Slovenia. Elements of this problem emerge on both supply (e.g., low level of educational and professional attainment of reference persons) and demand sides of the labor market (e.g., unfavorable local labor market conditions). A marked tendency toward maintaining the same employment status is more distinct in the case of holders employed on-farm only. Copyright 2005 International Association of Agricultural Economics.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 33 (2005)
Issue (Month): 2 (09)
Pages: 153-161

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Handle: RePEc:bla:agecon:v:33:y:2005:i:2:p:153-161

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References

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  1. Johan F. M. Swinnen & Liesbeth Dries & Karen Macours, 2005. "Transition and agricultural labor," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 15-34, 01.
  2. A. Kimhi, 1994. "Participation Of Farm Owners In Farm And Off-Farm Work Including The Option Of Full-Time Off-Farm Work," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 232-239.
  3. Nakamura, Alice & Nakamura, Masao, 1985. "Dynamic models of the labor force behavior of married women which can be estimated using limited amounts of past information," Journal of Econometrics, Elsevier, vol. 27(3), pages 273-298, March.
  4. 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.
  5. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
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Cited by:
  1. Laure Latruffe & Stefan Mann, 2008. "Labor constraints on choosing profitable products for part-time farmers in Swiss agriculture," Working Papers SMART - LERECO 08-03, INRA UMR SMART.
  2. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 42, number 92321.
  3. Falkowski, Jan & Jakubowski, Maciej & Strawinski, Pawel, 2011. "Returns from Income Strategies in Rural Poland," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114364, European Association of Agricultural Economists.
  4. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, . "Commonalities and Differences in Labour Market Developments and Constraints in Different EU Regions," Factor Markets Working Papers 125, Centre for European Policy Studies.
  5. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, . "Key Issues in Agricultural Labour Markets: A Review of Major Studies and Project Reports on Agriculture and Rural Labour Markets," Factor Markets Working Papers 126, Centre for European Policy Studies.
  6. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2012. "Labour Adjustments In Agriculture: Evidence From Romania," 132nd Seminar, October 25-27, 2012, Skopje, Republic of Macedonia 139503, European Association of Agricultural Economists.
  7. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 66, number 66.
  8. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, . "Supply and Demand Side Limitations Affecting the Structure of Agriculture and the Rural Economy," Factor Markets Working Papers 124, Centre for European Policy Studies.
  9. BROSIG, Stephan & GLAUBEN, Thomas & Herzfeld, Thomas & WANG, Xiaobing, 2009. "Persistence of full- and part-time farming in Southern China," China Economic Review, Elsevier, vol. 20(2), pages 360-371, June.
  10. Tocco,Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "The Reallocation of Agricultural Labour across Sectors: An Empirical Strategy for Micro Data," Factor Markets Working Papers 157, Centre for European Policy Studies.

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