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

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  • 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 wages, 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 seek 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.

Suggested Citation

  • Vergara, Oscar & Coble, Keith H. & Patrick, George F. & Knight, Thomas O. & Baquet, Alan E., 2004. "Farm Income Variability and the Supply of Off-Farm Labor by Limited-Resource Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(2), pages 467-479, August.
    • Handle: RePEc:cup:jagaec:v:36:y:2004:i:02:p:467-479_02
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    References listed on IDEAS

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    1. Huffman, Wallace E & Lange, Mark D, 1989. "Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 471-480, August.
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    5. 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.
    6. A Corsi & JL Findeis, 2000. "True state dependence and heterogeneity in off-farm labour participation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(2), pages 127-151, June.
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    9. 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.
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    Cited by:

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    2. Branco, D. & Feres, J., 2018. "Weather Shocks and Labor Allocation: Evidence from Northeastern Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277736, International Association of Agricultural Economists.
    3. Rakhe Balachandran & Jerrod Penn & Maria Bampasidou, 2023. "Understanding the variation in estimates of off‐farm labour supply elasticities: A meta‐analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 116-134, February.

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    More about this item

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D19 - Microeconomics - - Household Behavior - - - Other
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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