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Exploring within- and between-effects of the factors influencing off-farm work decisions in Switzerland

Author

Listed:
  • Dierk Schmid

    (Agroscope, Research Division Sustainability Assessment and Agricultural Management, Ettenhausen, Switzerland)

  • Swetlana Renner

    (Agroscope, Research Division Sustainability Assessment and Agricultural Management, Ettenhausen, Switzerland)

  • Daniel Hoop

    (Agroscope, Research Division Sustainability Assessment and Agricultural Management, Ettenhausen, Switzerland)

Abstract

We examine the determinants of off-farm work in Swiss agriculture between 2003 and 2013. By differentiating between the between-farm effects and the within-farm effects, our model provides new insights into the labour allocation process as compared with standard cross-sectional or panel data models. As regards the between-farm variations, our results show that younger farm families without children and farm households with higher non-agricultural education levels of both the farmer and the partner are more involved in working activities outside the farm. However, the within-farm time effects provided a more differentiated picture: impacts of changes in most variables over time tended to be smaller, and in case of two variables show opposite directions. In addition to a negative between-effect of farm income on the allocation of off-farm labour, our results on within-farm effects suggest that an increase in farm income per annual family work unit could be compatible with a higher share of off-farm work during the analysed period.

Suggested Citation

  • Dierk Schmid & Swetlana Renner & Daniel Hoop, 2023. "Exploring within- and between-effects of the factors influencing off-farm work decisions in Switzerland," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(10), pages 416-425.
    • Handle: RePEc:caa:jnlage:v:69:y:2023:i:10:id:233-2023-agricecon
    DOI: 10.17221/233/2023-AGRICECON
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