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What motivates farm couples to seek off-farm labour? A logit analysis of job transitions

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  • Erik Biørn
  • Hild-Marte Bjørnsen

Abstract

Some labour market consequences of transitions in the agriculture sector are examined by combining 20-year unbalanced panel data from Norwegian farm households and logit modelling of transition probabilities. The multi-dimensionality of the problem follows from two decision makers having four possible choices in each period: the farm operator and spouse can be working fully on the farm or having supplementary outside occupation. Transitions are modelled by five logit models. The most flexible model has a high number of parameters. Overall, the results indicate that transitions have mainly been directed towards the state where both partners work off the farm. An increasing livestock reduces the probability of moving to states with substantial off-farm labour participation. Increasing farm size tends to have the opposite effect. Recent on-farm investments come out with ambiguous effects. Having children seems to motivate operators to withdraw from off-farm labour and spouses to stay in or enter off-farm employment.

Suggested Citation

  • Erik Biørn & Hild-Marte Bjørnsen, 2015. "What motivates farm couples to seek off-farm labour? A logit analysis of job transitions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(2), pages 339-365.
    • Handle: RePEc:oup:erevae:v:42:y:2015:i:2:p:339-365.
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    Cited by:

    1. Rosemarie Bégin & Lota D. Tamini & Maurice Doyon, 2014. "L'effet du travail hors-ferme sur l'efficacité technique des fermes laitières québécoises: un modèle intégrant les biais de sélection sur les observables et inobservables," Cahiers de recherche CREATE 2014-9, CREATE.

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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