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Demand, Supply and Adjustment of Farm Labour in Australia

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  • Evans, Scott F
  • Lewis, Philip E T

Abstract

In this paper a disequilibrium model of the Australian rural labor market is constructed and the demand, supply, and adjustment functions estimated. The results indicate that the market for farm labor can be described by traditional neoclassical analysis and that wages are very slow to adjust to disequilibrium. The results imply that increases in farm prices will not necessarily maintain or raise farm employment. The most important determinants of farm employment are wages relative to other input prices and off-farm wages. Copyright 1986 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Suggested Citation

  • Evans, Scott F & Lewis, Philip E T, 1986. "Demand, Supply and Adjustment of Farm Labour in Australia," Australian Economic Papers, Wiley Blackwell, vol. 25(47), pages 236-246, December.
    • Handle: RePEc:bla:ausecp:v:25:y:1986:i:47:p:236-46
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    Cited by:

    1. John Freebairn, 1998. "Microeconomics of the Australian Labour Market," RBA Annual Conference Volume (Discontinued), in: Guy Debelle & Jeff Borland (ed.),Unemployment and the Australian Labour Market, Reserve Bank of Australia.

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