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Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis


Author Info

  • Möllers Judith
  • Fritzsch Jana
  • Buchenrieder Gertrud

    (Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO), Theodor-Lieser-str.2, 06120 Halle (Saale), Germany)


This paper provides an analysis of socio-economic characteristics and their influence on farm and non-farm incomes of rural households in Slovenia. With the canonical correlation analysis we use a methodological approach that offers a true multivariate procedure for both sides of the equation. It thus goes beyond a simple pair-wise correlation analysis and also beyond multiple correlation analysis. This rather rarely used statistical method offers interesting insights into many fields of analytical applications. Our results confirm that rural households usually turn towards non-farm employment if distress-push factors prevail. Besides insufficient farm incomes, large household sizes push households into non-farm diversification. Employment opportunities in the non-farm sector- regardless of whether triggered by distress in the household or demand in the non-farm sector- depend strongly on education.

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Bibliographic Info

Article provided by De Gruyter Open in its journal South East European Journal of Economics and Business.

Volume (Year): 3 (2008)
Issue (Month): 2 (November)
Pages: 39-48

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Handle: RePEc:vrs:seejeb:v:3:y:2008:i:2:p:39-48:n:4

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Keywords: Canonical Correlation Analysis; Slovenia; Rural Non-farm Sector; Diversification;


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Cited by:
  1. Fritzsch, Jana, 2011. "A Composite Fuzzy Indicator for Assessing Farm Household Potential for Non-farm Income Diversification," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 114349, European Association of Agricultural Economists.
  2. Fałkowski, Jan & Jakubowski, Maciej & Strawiński, Paweł, 2013. "Returns from Income Strategies in Rural Poland," Working Papers, Factor Markets, Centre for European Policy Studies 157916, Factor Markets, Centre for European Policy Studies.
  3. Meng, Ting & Florkowski, Wojciech J. & Kolavalli, Shashidhara & Ibrahim, Mohammed, 2012. "Food Expenditures and Income in Rural Households in the Northern Region of Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington, Agricultural and Applied Economics Association 124638, Agricultural and Applied Economics Association.
  4. Fritzsch, Jana & Buchenrieder, Gertrud & Mollers, Judith, 2010. "Non-farm income diversification of rural farm households in Central and Southeastern Europe: an application of fuzzy set theory," 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia, European Association of Agricultural Economists 95321, European Association of Agricultural Economists.
  5. Fritzsch, Jana & Möllers, Judith & Buchenrieder, Gertrud, 2011. "Employment diversification of farm households and structural change in the rural economy of the New Member States," IAMO Discussion Papers 134, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).


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