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Farm work, off-farm work, and hired farm labour: estimating a discrete-choice model of French farm couples' labour decisions

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  • Catherine Benjamin
  • Ayal Kimhi

Abstract

We model jointly several types of discrete-choice labour decisions of farm couples: farm work, off-farm work and hired farm labour. Rather than estimating a set of reduced-form participation equations that is subject to an internal inconsistency problem, we estimate a 16-choice multinomial model. We find that farm labour of operators and of spouses are substitutes. Hired farm labour increases with the farmer's qualifications, perhaps substituting for the couple's labour inputs. Other adults in the household substitute for the farm labour input of the farm couple and hired workers. We find that the organisation of work by French farm households has changed over time, in the direction of a more equal sharing of tasks and responsibilities between members of the farm family. Copyright 2006, Oxford University Press.

Suggested Citation

  • Catherine Benjamin & Ayal Kimhi, 2006. "Farm work, off-farm work, and hired farm labour: estimating a discrete-choice model of French farm couples' labour decisions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 149-171, June.
    • Handle: RePEc:oup:erevae:v:33:y:2006:i:2:p:149-171
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    References listed on IDEAS

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    1. Huffman, Wallace E & Lange, Mark D, 1989. "Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 471-480, August.
    2. Ayal Kimhi, 1999. "Estimation of an endogenous switching regression model with discrete dependent variables: Monte-Carlo analysis and empirical application of three estimators," Empirical Economics, Springer, vol. 24(2), pages 225-241.
    3. Findeis, Jill L. & Lass, Daniel A., 1992. "Farm Operator Off-farm Labor Supply and Hired Labor Use on Pennsylvania Farms," Staff Paper Series 256845, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    4. Ayal Kimhi, 2004. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 502-512.
    5. Daniel A. Lass & Conrado M. Gempesaw II, 1992. "The Supply of Off-Farm Labor: A Random Coefficients Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 400-411.
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    8. Huffman, Wallace E., 1991. "Agricultural Household Models: Survey and Critique," Staff General Research Papers Archive 11008, Iowa State University, Department of Economics.
    9. Ayal Kimhi & Myoung-jae Lee, 1996. "Off-Farm Work Decisions of Farm Couples: Estimating Structural Simultaneous Equations with Ordered Categorical Dependent Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 687-698.
    10. Ahituv, Avner & Kimhi, Ayal, 2002. "Off-farm work and capital accumulation decisions of farmers over the life-cycle: the role of heterogeneity and state dependence," Journal of Development Economics, Elsevier, vol. 68(2), pages 329-353, August.
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