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Labour Supply And Off-Farm Work By Farmers: Theory And Estimation

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  • Robinson, Chris
  • McMahon, Pat J.
  • Quiggin, John C.

Abstract

Off-farm employment has become increasingly important as an aspect of resource adjustment and a source of income in Australian agriculture. However, it is surprising that there is a paucity of work on this topic reported in the agricultural economics literature. Therefore, we have drawn upon recent developments in labour economics in order to investigate off-farm employment in Australia. A conceptual model of the allocation of a farmer's labour between farm and off-farm work is developed and applied to cross-sectional data from the Australian Agricultural and Grazing Industries Survey. A Tobit maximum likelihood procedure is utilised to test the influences of the life cycle, level of human capital, wealth, non-wage income and farm income on the off-farm labour supply of farmers.

Suggested Citation

  • Robinson, Chris & McMahon, Pat J. & Quiggin, John C., 1982. "Labour Supply And Off-Farm Work By Farmers: Theory And Estimation," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(01), pages 1-16, April.
    • Handle: RePEc:ags:ajaeau:23051
    DOI: 10.22004/ag.econ.23051
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    References listed on IDEAS

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    Cited by:

    1. Lim-Applegate, Hazel & Rodriguez, Gil & Olfert, M. Rose, 1997. "Determinants of non-farm labour participation rates among farmers in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(01), pages 1-14.
    2. Pandey, Sushil & Piggott, Roley R. & MacAulay, T. Gordon, 1982. "The Elasticity Of Aggregate Australian Agricultural Supply: Estimates And Policy Implications," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(3), pages 1-18, December.
    3. Shehata, Emad Abd Elmessih, 2006. "تقدير عرض العمالة فى القطاع الزراعى المصرى [Estimating Labor Supply in the Egyptian Agricultural Sector]," MPRA Paper 43445, University Library of Munich, Germany, revised Dec 2006.
    4. Geoff W. Edwards, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 129-143, June.
    5. Robert G. Chambers & John Quiggin, 2004. "Technological and financial approaches to risk management in agriculture: an integrated approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 199-223, June.
    6. Kimhi, Ayal, "undated". "The Relevance Of The Extent Of Farm Work To The Analysis Of Off-Farm Labor Supply Of Farmers," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271076, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Kimhi, Ayal, 1991. "Part-Time Farming Versus Specialization of Farm Operators in Farm or Off-Farm Work: A Multinomial Logit Analysis," Working Papers 197771, University of Maryland, Department of Agricultural and Resource Economics.
    8. Kayastha, P. & Rauniyar, Ganesh P. & Parker, W.J., 1999. "Determinants of off-farm employment in eastern rural Nepal," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123825, Australian Agricultural and Resource Economics Society.
    9. A. Kimhi, 1994. "Participation Of Farm Owners In Farm And Off‐Farm Work Including The Option Of Full‐Time Off‐Farm Work," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 232-239, May.

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