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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.

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  • 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, Foundation for the European Review of Agricultural Economics, 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., 1991. "Agricultural Household Models: Survey and Critique," Staff General Research Papers Archive 11008, Iowa State University, Department of Economics.
    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. 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.
    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.
    6. 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.
    7. Ayal Kimhi, 1994. "Quasi Maximum Likelihood Estimation of Multivariate Probit Models: Farm Couples' Labor Participation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 828-835.
    8. Daniel A. Sumner, 1982. "The Off-Farm Labor Supply of Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(3), pages 499-509.
    9. Deolalikar, Anil B & Vijverberg, Wim P M, 1987. "A Test of Heterogeneity of Family and Hired Labour in Asian Agriculture," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(3), pages 291-305, August.
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    Cited by:

    1. 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.
    2. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2013. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," Working Papers 160742, Factor Markets, Centre for European Policy Studies.
    3. Castro Campos, Bente, 2013. "Human capital differences or labor market discrimination? The occupational outcomes of ethnic minorities in rural Guizhou (China)," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 73, number 73.
    4. Tom Hertz, 2009. "The effect of nonfarm income on investment in Bulgarian family farming," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 161-176, March.
    5. Lagerkvist, Carl Johan & Larsen, Karin & Olson, Kent D., 2006. "Off-farm income and farm capital accumulation: a farm-level data analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21480, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. 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), issue 2, August.
    7. Aurélie Darpeix & Céline Bignebat & Philippe Perrier-Cornet, 2014. "Demand for Seasonal Wage Labour in Agriculture: What Does Family Farming Hide?," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(1), pages 257-272, January.
    8. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2014. "Labour adjustments in agriculture: evidence from Romania," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(2), August.
    9. Thia C. Hennessy & Tahir Rehman, 2008. "Assessing the Impact of the 'Decoupling' Reform of the Common Agricultural Policy on Irish Farmers' Off-farm Labour Market Participation Decisions," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 41-56, February.
    10. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, "undated". "Key Issues in Agricultural Labour Markets: A Review of Major Studies and Project Reports on Agriculture and Rural Labour Markets," Factor Markets Working Papers 126, Centre for European Policy Studies.
    11. Salvioni, Cristina & Sciulli, Dario & Parodi, Giuliana, 2008. "Do Caring Services Affect Off-Farm Work? Evidence from Italy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(2), June.
    12. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, "undated". "Supply and Demand Side Limitations Affecting the Structure of Agriculture and the Rural Economy," Factor Markets Working Papers 124, Centre for European Policy Studies.
    13. 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).
    14. 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.
    15. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, "undated". "Reallocation of Agricultural Labor and Farm Subsidies: Evidence From the EU Regions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126645, International Association of Agricultural Economists.
    16. Wiredu, Alexander Nimo & Zeller, Manfred & Diagne, Aliou, 0. "What Determines Adoption of Fertilizers among Rice-Producing Households in Northern Ghana?," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 54.
    17. Unay-Gailhard, Ilkay & Bojnec, Štefan, 2016. "Agri-environmental measures and on-farm labour employment," 149th Seminar, October 27-28, 2016, Rennes, France 245070, European Association of Agricultural Economists.
    18. 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.
    19. Mishra, Ashok K. & Chang, Hung-Hao, 2012. "Can off farm employment affect the privatization of social safety net? The case of self-employed farm households," Food Policy, Elsevier, vol. 37(1), pages 94-101.
    20. Dupraz, Pierre & Latruffe, Laure, 2015. "Trends in family labour, hired labour and contract work on French field crop farms: The role of the Common Agricultural Policy," Food Policy, Elsevier, vol. 51(C), pages 104-118.
    21. Chang, Yang-Ming & Huang, Biing-Wen & Chen, Yun-Ju, 2012. "Labor supply, income, and welfare of the farm household," Labour Economics, Elsevier, vol. 19(3), pages 427-437.
    22. Meraner, Manuela & Finger, Robert, 2016. "Motive Und Determinanten Des Agrartourismus – Eine Fallstudie Der Region Münster," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244870, German Association of Agricultural Economists (GEWISOLA).

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