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Calculating shadow wages for family labour in agriculture : An analysis for Spanish citrus fruit farms

  • Andrés J. Picazo-Tadeo

    ()

    (Universitat de València, Dpto. Economía Aplicada II, Avda dels Tarongers s/n., 46022 Valencia Spain)

  • Ernest Reig-Martínez

    (Universitat de València and Instituto Valenciano de Investigaciones Económicas, Guardia Civil, 22, 46020 Valencia Spain)

Registered author(s):

    This paper deals with the calculation of shadow wages for family labour in agriculture. Using the existence of a duality between input distance and cost functions, we use the former to derive individual labour shadow prices for a sample of Spanish citrus fruit producers. Our results show that the average shadow price representing the opportunity cost of family labour employed onfarm, is lower than the average market wage rate paid for hired labour. We relate this finding to a strategy of outsourcing of many growing tasks that is currently pursued by farmers to overcome the problems posed by a suboptimal farm size.

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    File URL: http://ageconsearch.umn.edu/bitstream/201781/2/75-5-21.pdf
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    Article provided by INRA Department of Economics in its journal Cahiers d'Economie et Sociologie Rurales.

    Volume (Year): 75 (2005)
    Issue (Month): p ()
    Pages: 5-21

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    Handle: RePEc:rae:jouces:v:75:y:2005:i:p:5-21
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