Is multivariate probit really useless in analysing off-farm labour participation of farm couples? A note
AbstractIn a recent paper, Benjamin and Kimhi (2006) argued that using multivariate probit for analysing off-farm participation of farm couples suffers from a theoretical inconsistency. This note tries to clarify this issue, and illustrates the joint participation rules based on reservation wages of household members. The reservation wages of each household member is contingent on the participation status of the other member. Hence, participation rules have to keep into account the joint participation probabilities of the couple.
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Bibliographic InfoPaper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp03_10.
Length: 16 pages
Date of creation: Jan 2010
Date of revision:
off-farm labour participation; farm household; multivariate probit;
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- 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
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-05-15 (Agricultural Economics)
- NEP-ALL-2010-05-15 (All new papers)
- NEP-LAB-2010-05-15 (Labour Economics)
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