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Simultaneous estimation of work choices and the level of farm activity using panel data

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  • Avner Ahituv
  • Ayal Kimhi

Abstract

We analyse the simultaneous determination and evolution over time of work choices and the level of farm activity, using a panel of Israeli farm households. We estimate jointly a multinomial choice model of work activity and an endogenous switching regression of farm size, accounting for unobserved heterogeneity and correcting for simultaneity bias. Our results imply that some family farms tend to expand over time and specialise in farming, whereas other farm households downsize their farming operation and increase their engagement in the off-farm labour market. Therefore, the size distribution of farms is converging towards a bimodal distribution. Copyright 2006, Oxford University Press.

Suggested Citation

  • Avner Ahituv & Ayal Kimhi, 2006. "Simultaneous estimation of work choices and the level of farm activity using panel data," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(1), pages 49-71, March.
    • Handle: RePEc:oup:erevae:v:33:y:2006:i:1:p:49-71
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    Cited by:

    1. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    2. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    3. Tianyuan Luo & Cesar L Escalante, 2017. "US farm workers: What drives their job retention and work time allocation decisions?," The Economic and Labour Relations Review, , vol. 28(2), pages 270-293, June.
    4. Hoveid, Oyvind & Raknerud, A., 2008. "Dynamics of income, wealth and capital in Norwegian farm household accounts: A state-space model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44461, European Association of Agricultural Economists.
    5. Abdul-Salam, Yakubu & Roberts, Deborah, 2018. "Determinants of off-farm work and its effect on agricultural input intensity," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273486, Agricultural Economics Society.
    6. Lien, Gudbrand D. & Kumbhakar, Subal C. & Hardaker, J. Brian, 2008. "Determinants Of Part-Time Farming And Its Effect On Farm Productivity And Efficiency," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6701, European Association of Agricultural Economists.
    7. Ayal Kimhi & Nitzan Tzur-Ilan, 2021. "Structural Changes in Israeli Family Farms: Long-Run Trends in the Farm Size Distribution and the Role of Part-Time Farming," Agriculture, MDPI, vol. 11(6), pages 1-15, June.
    8. 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.
    9. Erik Biørn & Hild-Marte Bjørnsen, 2015. "What motivates farm couples to seek off-farm labour? A logit analysis of job transitions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(2), pages 339-365.
    10. Yuval Dolev & Ayal Kimhi, 2010. "Do family farms really converge to a uniform size? The role of unobserved farm efficiency ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 119-136, January.
    11. Kimhi, Ayal, 2008. "Has Debt Restructuring Facilitatead Structural Transformation on Israeli Family Farms?," Discussion Papers 37943, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    12. Yuriy Pylypchuk & Julie Hudson, 2009. "Immigrants and the use of preventive care in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 18(7), pages 783-806, July.
    13. Bojnec, Stefan & Ferto, Imre, 2011. "Impact of Off-farm Income on Farm Efficiency in Slovenia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114258, European Association of Agricultural Economists.
    14. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," Discussion Papers 99217, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    15. Størdal, Ståle & Lien, Gudbrand & Baardsen, Sjur, 2008. "Analyzing determinants of forest owners' decision-making using a sample selection framework," Journal of Forest Economics, Elsevier, vol. 14(3), pages 159-176, June.
    16. Kimhi, Ayal & Sarit Menahem-Carmi, 2017. "Does rural household income depend on neighboring urban centers?Evidence from Israel," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 13(1), pages 26-35, JUNE.
    17. Schmidt, Claudia & Goetz, Stephan J. & Tian, Zheng, 2021. "Female farmers in the United States: Research needs and policy questions," Food Policy, Elsevier, vol. 101(C).
    18. Dolev, Yuval & Kimhi, Ayal, 2006. "Survival And Growth Of Family Farms In Israel: 1971-1995," Discussion Papers 7146, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    19. Shahzad, Muhammad Abid & Fischer, Christian, 2021. "The State of Other Gainful Activities in European Union-27: An Empirical Analysis of Trends and Determinant Factors," 2021 Conference, August 17-31, 2021, Virtual 315226, International Association of Agricultural Economists.
    20. Kimhi, Ayal, 2009. "Heterogeneity, Specialization and Social Cohesion in Israeli Moshav Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(1), pages 1-13.
    21. Grosjean, Pauline & Kontoleon, Andreas, 2009. "How Sustainable are Sustainable Development Programs? The Case of the Sloping Land Conversion Program in China," World Development, Elsevier, vol. 37(1), pages 268-285, January.
    22. Bjornsen, Hild-Marte & Mishra, Ashok K., 2012. "Off-farm Employment and Farming Efficiency in Modern Agriculture: A Dynamic Panel Analysis," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124742, Agricultural and Applied Economics Association.
    23. Dolev, Yuval & Kimhi, Ayal, 2008. "Does Farm Size Really Converge? The Role of Unobserved Farm Efficiency," Discussion Papers 45778, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    24. Garcia, Luis & Laepple, Doris & Dillon, Emma & Thorne, Fiona, 2020. "The role of hired labor in transient and persistent technical efficiency on Irish dairy farms," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304395, Agricultural and Applied Economics Association.

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