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Has the "Farm Problem" Disappeared? A Comparison of Household and Self-Employment Income Levels of the Farm and Nonfarm Self-Employed

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  • Peake, Whitney O.
  • Marshall, Maria I.

Abstract

This study tests the impact of household and demographic factors on the economic well-being of the farm and nonfarm self-employed using data from the Integrated Public Use Microdata Series. Parametric and nonparametric techniques are used to test for statistical differences in self-employment and household income levels. Further, household and demographic factors are tested for their effect on self-employment income using a censored tobit regression model. The farm self-employed report significantly higher levels of self-employment income. Results reveal that several household and demographic factors significantly impact self-employment income levels for the farm and nonfarm self-employed, with key differences in impacts.

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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46304.

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Date of creation: 2009
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Handle: RePEc:ags:saeana:46304

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Keywords: self-employment; farm households; Community/Rural/Urban Development;

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  1. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
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  9. Timothy Bates, 2001. "Financing the development of urban minority communities: lessons from history," Communities and Banking, Federal Reserve Bank of Boston, issue Sum, pages 12-15.
  10. Ani L. Katchova, 2008. "A Comparison of the Economic Well-Being of Farm and Nonfarm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 733-747.
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  15. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
  16. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  17. Gunter, Lewell F. & McNamara, Kevin T., 1990. "The Impact Of Local Labor Market Conditions On The Off-Farm Earnings Of Farm Operators," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(01), July.
  18. Robert W. Fairlie & Bruce D. Meyer, 2000. "Trends in Self-Employment among White and Black Men during the Twentieth Century," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 643-669.
  19. Bruce D. Meyer, 1990. "Why Are There So Few Black Entrepreneurs?," NBER Working Papers 3537, National Bureau of Economic Research, Inc.
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Cited by:
  1. Gianluca Stefani & Benedetto Rocchi & Donato Romano, 2012. "Does agriculture matter? Revisiting the farm income problem in Italy," Working Papers - Economics wp2012_18.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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