Farmers' time allocation between farm work and off-farm work and the importance of unobserved group effects: evidence from Israeli cooperatives
Agricultural cooperatives differ in many attributes which affect members' farm and off-farm earnings in different ways. As a result, time allocation patterns between farm work and off-farm work will vary significantly across cooperatives. Participation equations in farm work and off-farm work of farmers who are members of Israeli moshavim are estimated jointly, including a cooperative-specific factor in each equation. The fixed effects are found to be significant and important, but can be only partly explained by observed cooperative attributes. This provides another support to the Monte Carlo results of Borjas and Sueyoshi, that controlling for group effects is superior to alternative models. The results also imply that unobserved factors have considerable effects on farmers' time allocation, and hence should be controlled for whenever possible.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Borjas, George J. & Sueyoshi, Glenn T., 1994.
"A two-stage estimator for probit models with structural group effects,"
Journal of Econometrics,
Elsevier, vol. 64(1-2), pages 165-182.
- George J. Borjas & Glenn T. Sueyoshi, 1993. "A Two-Stage Estimator for Probit Models with Structural Group Effects," NBER Technical Working Papers 0146, National Bureau of Economic Research, Inc.
- Reuben Gronau, 1976.
"Leisure, Home Production and Work--The Theory of The Allocation of Time Revisited,"
NBER Working Papers
0137, National Bureau of Economic Research, Inc.
- Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
- 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.
- Huffman, Wallace, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," Staff General Research Papers 10973, Iowa State University, Department of Economics.
- 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.
- D. M. Shucksmith & R. Smith, 1991. "Farm Household Strategies And Pluriactivity In Upland Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 340-353.
- Haruvi, Nava & Kislev, Yoav, 1984. "Cooperation in the Moshav," Journal of Comparative Economics, Elsevier, vol. 8(1), pages 54-73, March.
- Tokle, J. G. & Huffman, Wallace, 1991. "Local Economic Conditions and Wage Labor Decisions of Farm and Rural Nonfarm Couples," Staff General Research Papers 10988, Iowa State University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:14:y:1996:i:2:p:135-142. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.