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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. 0(Number 1), pages 1-16, April.
  • Handle: RePEc:ags:ajaeau:23051
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    References listed on IDEAS

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    1. Huffman, Wallace E, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 14-23, February.
    2. J.S. Nalson, 1964. "Problems Of Resource Use On The Family Farm," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 8(1), pages 46-56, June.
    3. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Time and Goods over the Life Cycle," NBER Books, National Bureau of Economic Research, Inc, number ghez75-1, December.
    4. Blinder, Alan S & Weiss, Yoram, 1976. "Human Capital and Labor Supply: A Synthesis," Journal of Political Economy, University of Chicago Press, vol. 84(3), pages 449-472, June.
    5. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    6. Nalson, J.S., 1964. "Problems Of Resource Use On The Family Farm," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 1), pages 1-11, June.
    7. Tubman, Wendy, 1977. "A Note On Off-Farm Income Of Farm Families In Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 3), pages 1-6, December.
    8. Paul Polzin & Peter MacDonald, 1971. "Off-Farm Work: A Marginal Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 85(3), pages 540-545.
    9. Wales, T J & Woodland, A D, 1980. "Sample Selectivity and the Estimation of Labor Supply Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 437-468, June.
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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. 0(Issue 1), 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. 0(Number 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. Chambers, Robert G. & Quiggin, John C., 2004. "Technological and financial approaches to risk management in agriculture: an integrate approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 0(Issue 2), pages 1-25.
    5. Kimhi, Ayal, 1991. "The Relevance of the Extent of Farm Work to the Analysis of Off-Farm Labor Supply of Farmers," Working Papers 197763, University of Maryland, Department of Agricultural and Resource Economics.
    6. 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.
    7. 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.
    8. 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.

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    Keywords

    Labor and Human Capital;

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