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Do They Come Back Again? The Symmetry and Reversibility of Off-Farm Employment

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  • Weiss, Christoph R

Abstract

A panel of more than 39,000 Upper Austrian farm households has been used to investigate off-farm labour market behaviour. We find the full-time/part-time decision of farmers to be determined by their previous off-farm employment status (state dependence). Whereas an increase in the market wage significantly raises the probability of switching from full-time to part-time farming, a comparable wage reduction does not influence the probability of returning to full-time farming again. We thus conclude that the assumption of full-reversibility necessarily made in empirical models based on cross-section data cannot be supported with Upper Austrian data. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Weiss, Christoph R, 1997. "Do They Come Back Again? The Symmetry and Reversibility of Off-Farm Employment," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 65-84.
  • Handle: RePEc:oup:erevae:v:24:y:1997:i:1:p:65-84
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    Cited by:

    1. Stephan Brosig & Thomas Glauben & Thomas Herzfeld & Scott Rozelle & Xiaobing Wang, 2007. "The dynamics of Chinese rural households' participation in labor markets," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 167-178, September.
    2. Wang, Xiaobing & Yamauchi, Futoshi & Otsuka, Keijiro & Huang, Jikun, 2016. "Wage Growth, Landholding, and Mechanization in Chinese Agriculture," World Development, Elsevier, vol. 86(C), pages 30-45.
    3. Sarkar, Sudipa & Sahoo, Soham & Klasen, Stephan, 2019. "Employment transitions of women in India: A panel analysis," World Development, Elsevier, vol. 115(C), pages 291-309.
    4. Elias Giannakis & Sophia Efstratoglou & Artemis Antoniades, 2018. "Off-Farm Employment and Economic Crisis: Evidence from Cyprus," Agriculture, MDPI, Open Access Journal, vol. 8(3), pages 1-11, March.
    5. Muhammad Irshad Ahmad & Les Oxley & Hengyun Ma, 2020. "What Makes Farmers Exit Farming: A Case Study of Sindh Province, Pakistan," Sustainability, MDPI, Open Access Journal, vol. 12(8), pages 1-17, April.
    6. Brosig, Stephan & Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2009. "Persistence of full- and part-time farming in Southern China," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 360-371.
    7. Latruffe, Laure & Mann, Stefan, 2015. "Labour constraints on choosing profitable products for part-time farmers in Swiss agriculture," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 4(2), pages 1-15, August.
    8. Roeder, Norbert & Kilian, Stefan, 2009. "Regional differences in the determinants for structural change in German agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 51463, International Association of Agricultural Economists.
    9. H. D. Ahrens & R. R. Galiev, 2019. "Viability of Farm Households in Russia: Theoretical Approaches and Practical Conclusions," Studies on Russian Economic Development, Springer, vol. 30(3), pages 279-290, May.
    10. Corsi, A. & Salvioni, C., 2013. "Off-farm labour participation of Italian farmers, state dependence and the CAP reform," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149886, Italian Association of Agricultural and Applied Economics (AIEAA).
    11. Peter Howley & Emma Dillon & Thia Hennessy, 2014. "It’s not all about the money: understanding farmers’ labor allocation choices," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 261-271, June.
    12. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321.
    13. Cornilius Chikwama, 2004. "Rural Off-Farm Employment and Farm Investment: An Analytical Framework and Evidence from Zimbabwe," CERT Discussion Papers 0403, Centre for Economic Reform and Transformation, Heriot Watt University.
    14. Jin-Tao Zhan & Yan-Rui Wu & Xiao-Hui Zhang & Zhang-Yue Zhou, 2012. "Why do farmers quit from grain production in China? Causes and implications," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(3), pages 342-362, August.
    15. Elias Andersson & Gun Lidestav, 2014. "Gendered Resource Access and Utilisation in Swedish Family Farming," Land, MDPI, Open Access Journal, vol. 3(1), pages 1-16, February.
    16. Cornilius Chikawama, 2004. "Quota Rural Off-Farm Employment and Farm Investment: An Analytical Framework and Evidence from Zimbabwe," Working Papers E04, Department of Economics, School of Management and Languages, Heriot Watt University.
    17. Harsche, Johannes, 2007. "Bestimmungsfaktoren für das Erwerbsverhalten von Landwirten unter besonderer Berücksichtigung der Unternehmereigenschaften," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(02), pages 1-12.
    18. Corsi, Alessandro & Salvioni, Cristina, 2017. "Once part-timer always part-timer? Causes for persistence in off farm work state of farmers," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(2), September.

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