Effects of the Internal Wage on Output Supply: A Structural Estimation for Japanese Rice Farmers
The “shadow” or “internal” wage plays a crucial role, via the “internal wage effect,” in models of agricultural households with absent or constrained off-farm wage employment. To verify its empirical relevance, parameters of the production and welfare functions are estimated for Japanese rice farmers. It is inferred from this structural estimation that their off-farm wage employment is actually constrained and that the “internal wage effect” of changes in the price of rice significantly influences their supply of rice. Copyright 1999, Oxford University Press.
Volume (Year): 81 (1999)
Issue (Month): 1 ()
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