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What Motivates Farm Couples to Seek Off-farm Labour? A Logit Analysis of Job Transitions

Author

Listed:
  • Biørn, Erik

    (Dept. of Economics, University of Oslo)

  • Bjørnsen, Hild-Marte

    (Norwegian Agricultural Economics Research Institute)

Abstract

In this paper some labour market consequences of transitions in the agriculture sector are examined by combining a 20-year unbalanced panel data set from Norwegian farm couples (households) and logit modeling of one-period transition probabilities. The multi-dimensionality of the problem follows from two decision makers (partners) having four possible choices in each period: the farm operator and spouse can be working fully on the farm or having supplementary outside occupation. Transition probabilities are modeled by five alternative logit models. State dependence is represented to different extent. The most flexible model has a high number of parameters. Overall, the results indicate that transitions have mainly bee 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. Increased farm size tends to have the opposite effect. Recent on-farm investments come out with ambiguous effects, and the pattern seems to change during the observation period. Having children seems to motivate operators to withdraw from off-farm labour and spouses to stay in or entering off-farm employment.

Suggested Citation

  • Biørn, Erik & Bjørnsen, Hild-Marte, 2013. "What Motivates Farm Couples to Seek Off-farm Labour? A Logit Analysis of Job Transitions," Memorandum 09/2013, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2013_009
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    References listed on IDEAS

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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

    Keywords

    Labour market transitions; Agriculture; Panel data; Markov chain; Logit analysis; State dependence; Multiple job-holding;
    All these keywords.

    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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