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

Listed author(s):
  • Chris Robinson
  • Pat J. McMahon
  • John C. Quiggin

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.

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File URL: http://hdl.handle.net/10.1111/j.1467-8489.1982.tb00406.x
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Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 26 (1982)
Issue (Month): 1 (April)
Pages: 23-38

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Handle: RePEc:bla:ajarec:v:26:y:1982:i:1:p:23-38
DOI: j.1467-8489.1982.tb00406.x
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  1. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
  2. 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.
  3. 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, 06.
  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. Nalson, J.S., 1964. "Problems Of Resource Use On The Family Farm," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 8(01), June.
  6. 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.
  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. 21(03), 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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