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Market Facilitation Program Payments, Employer-Sponsored Health Insurance Coverage and Off-Farm Employment

Author

Listed:
  • Mishra, Ashok K.

    (Arizona State University)

  • Villacis, Alexis H.

    (Arizona State University)

  • Miller, Cristina D. M.

    (U.S. Department of Agriculture)

Abstract

About two-thirds of U.S. farm households are employed off the farm. Off-farm sources represent 85 percent of the income earned by the average farm household and have turned into their main source of health insurance coverage. Farmers receive various government farm program payments, including the recently added Market Facilitation Program (MFP) payments. These payments have an unintended consequence on labor supply by farm operator households. Using farm household-level data from the 2019 Agricultural Resource Management Survey, this study investigates the impact of employer-sponsored health insurance coverage and participation in MFP on off-farm labor allocation decisions of U.S. farm families. Results from our empirical model show that farm families are 52% more likely to work off the farm if off-farm jobs provide employer-sponsored health insurance coverage. More importantly, results show that MFP payments have a significant and negative effect on the off-farm employment of U.S. farm-operator households.

Suggested Citation

  • Mishra, Ashok K. & Villacis, Alexis H. & Miller, Cristina D. M., 2022. "Market Facilitation Program Payments, Employer-Sponsored Health Insurance Coverage and Off-Farm Employment," IZA Discussion Papers 15834, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15834
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    References listed on IDEAS

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    More about this item

    Keywords

    Agricultural Resource Management Survey; government subsidies; employer-sponsored health insurance coverage; off-farm employment;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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