Advanced Search
MyIDEAS: Login to save this paper or follow this series

Returns from income strategies in rural Poland

Contents:

Author Info

  • Jan Fałkowski

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Maciej Jakubowski

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Paweł Strawiński

    ()
    (Faculty of Economic Sciences, University of Warsaw)

Abstract

In Poland, rural households are encouraged to diversify their activities both in and outside the agricultural sector in order to stabilize and improve their income. However, relatively few households appear to do this. This paper addresses this issue, investigating the returns from the income strategies of rural households using propensity score matching methods and extensive data sets for 1998–2008. The results suggest that returns from combining farm and off-farm activities are lower than returns from specialization, namely, concentrating on either farming or off-farm activities. The income difference between farmers and those who combine farming and off-farm activities increased after Poland joined the European Union.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP45.pdf
File Function: First version, 2011
Download Restriction: no

Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2011-05.

as in new window
Length: 30 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:war:wpaper:2011-05

Contact details of provider:
Postal: ul. Dluga 44/50, 00-241 Warszawa
Phone: (+48 22) 55 49 144
Fax: (+48 22) 831 28 46
Email:
Web page: http://www.wne.uw.edu.pl/
More information through EDIRC

Related research

Keywords: Income diversification; rural areas; propensity score matching; Poland;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Richard Blundell & Monica Costa Dias, 2008. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP26/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 26(1), October.
  3. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
  4. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
  5. Janet Dwyer & Jill Findeis, 2008. "Human and Social Capital in Rural Development - EU and US Perspectives," EuroChoices, The Agricultural Economics Society, vol. 7(Special I), pages 38-45, 04.
  6. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  7. Thomas Reardon & J. Edward Taylor & Kostas Stamoulis & Peter Lanjouw & Arsenio Balisacan, 2000. "Effects of Non-Farm Employment on Rural Income Inequality in Developing Countries: An Investment Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 266-288.
  8. Dries, Liesbeth & Swinnen, Johan F. M., 2002. "Institutional Reform and Labor Reallocation During Transition: Theory Evidence From Polish Agriculture," World Development, Elsevier, vol. 30(3), pages 457-474, March.
  9. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 33-50, January.
  10. Juvancic, Luka & Erjavec, Emil, 2003. "Intertemporal Analysis Of Employment Decisions On Agricultural Holdings In Slovenia," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25840, International Association of Agricultural Economists.
  11. Chaplin, Hannah & Davidova, Sophia & Gorton, Matthew, 2003. "Agricultural Adjustment And The Diversification Of Farm Households In Central Europe," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25843, International Association of Agricultural Economists.
  12. Barry K. Goodwin & Matthew T. Holt, 2002. "Parametric and Semiparametric Modeling of the Off-Farm Labor Supply of Agrarian Households in Transition Bulgaria," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 84(1), pages 184-209.
  13. Johan F. M. Swinnen & Liesbeth Dries & Karen Macours, 2005. "Transition and agricultural labor," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 15-34, 01.
  14. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1251-88, November.
  15. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
  16. Karen Macours & Johan F. M. Swinnen, 2005. "Agricultural Labor Adjustments in Transition Countries: The Role of Migration and Impact on Poverty ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 405-411.
  17. Hazell, Peter B. & Haggblade, Steven, 1990. "Rural - urban growth linkages in India," Policy Research Working Paper Series 430, The World Bank.
  18. Deininger, Klaus & Feder, Gershon, 2001. "Land institutions and land markets," Handbook of Agricultural Economics, Elsevier, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 6, pages 288-331 Elsevier.
  19. Jolliffe, Dean, 2004. "The impact of education in rural Ghana: examining household labor allocation and returns on and off the farm," Journal of Development Economics, Elsevier, vol. 73(1), pages 287-314, February.
  20. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
  21. Chaplin, Hannah & Davidova, Sophia & Gorton, Matthew, 2005. "Impediments to Employment and Enterprise Diversification: Evidence from Small-Scale Farms in Poland," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24760, European Association of Agricultural Economists.
  22. Paul Winters & Timothy Essam & Benjamin Davis & Alberto Zezza & Calogero Carletto & Kostas Stamoulis, 2008. "Patterns of Rural Development: A Cross-Country Comparison Using Microeconomic Data," Working Papers 08-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  23. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, 02.
  24. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, Blackwell, vol. 26(1), pages 1-23, October.
  25. Möllers Judith & Fritzsch Jana & Buchenrieder Gertrud, 2008. "Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis," South East European Journal of Economics and Business, De Gruyter Open, vol. 3(2), pages 39-48, November.
  26. Lee, Myoung-jae, 2005. "Micro-Econometrics for Policy, Program and Treatment Effects," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199267699, October.
  27. Deininger, Klaus & Olinto, Pedro, 2001. "Rural Nonfarm Employment and Income Diversification in Colombia," World Development, Elsevier, vol. 29(3), pages 455-465, March.
  28. Arne Henningsen, 2009. "Why is the Polish farm sector still so underdeveloped?," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 47-64.
  29. Samuelson, Paul A., 1967. "General Proof that Diversification Pays," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 2(01), pages 1-13, March.
  30. Barry, Peter J. & Robison, Lindon J., 2001. "Agricultural finance: Credit, credit constraints, and consequences," Handbook of Agricultural Economics, Elsevier, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 10, pages 513-571 Elsevier.
  31. Imbens, Guido & Abadie, Alberto, 2008. "On the Failure of the Bootstrap for Matching Estimators," Scholarly Articles 3043415, Harvard University Department of Economics.
  32. Ayal Kimhi, 2000. "Is Part-Time Farming Really a Step in the Way Out of Agricultural?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 82(1), pages 38-48.
  33. Narayan, Deepa & Pritchett, Lant, 1997. "Cents and sociability : household income and social capital in rural Tanzania," Policy Research Working Paper Series 1796, The World Bank.
  34. Ayal Kimhi, 1996. "Demographic composition of farm households and its effect on time allocation," Journal of Population Economics, Springer, vol. 9(4), pages 429-439.
  35. Tokle, J. G. & Huffman, Wallace, 1991. "Local Economic Conditions and Wage Labor Decisions of Farm and Rural Nonfarm Couples," Staff General Research Papers 10988, Iowa State University, Department of Economics.
  36. Huffman, Wallace, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," Staff General Research Papers 10973, Iowa State University, Department of Economics.
  37. Seeth, Harm Tho & Chachnov, Sergei & Surinov, Alexander & Von Braun, Joachim, 1998. "Russian poverty: Muddling through economic transition with garden plots," World Development, Elsevier, vol. 26(9), pages 1611-1624, September.
  38. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
  39. Brada, Josef C, 1989. "Technological Progress and Factor Utilization in Eastern European Economic Growth," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 56(224), pages 433-48, November.
  40. Zvi Lerman & Pepijn Schreinemachers, 2005. "Individual Farming as a Labour Sink: Evidence from Poland and Russia," Comparative Economic Studies, Palgrave Macmillan, vol. 47(4), pages 675-695, December.
  41. Lerman, Zvi & Csaki, Csaba & Feder, Gershon, 2002. "Land policies and evolving farm structures in transition countries," Policy Research Working Paper Series 2794, The World Bank.
  42. Ayal Kimhi, 2004. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 86(2), pages 502-512.
  43. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
  44. Euan Phimister & Deborah Roberts & Alana Gilbert, 2004. "The Dynamics of Farm Incomes: Panel data analysis using the Farm Accounts Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 197-220.
  45. Avner Ahituv & Ayal Kimhi, 2006. "Simultaneous estimation of work choices and the level of farm activity using panel data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(1), pages 49-71, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Janda, Karel & Strielkowski, Wadim & Rausser, Gordon, 2013. "Determinants of profitability of Polish rural micro-enterprises," MPRA Paper 52771, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:war:wpaper:2011-05. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcin Bąba).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.