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On-Farm Wages And Labour Supply In A Rural Agrifood System: Evidence From Nigeria

Author

Listed:
  • John Chiwuzulum Odozi

    (Ajayi Crowther University, Nigeria.)

  • Iredele Emmanuel Ogunbayo

    (Innovation Lab for Policy Leadership in Agriculture and Food Security (PiLAF), University of Ibadan, Nigeria.)

Abstract

Literature presents wage rates in both farm and off-farm markets as important factors that determine households' labour allocation decisions. Using an agricultural household model, we investigate the direct responses of farm households in the agri-food system. The study considered the non-separability of decisions among farmers and applied econometric methods consisting of the use of panel data and the fixed effects estimation technique. The results show that more hours of family labour are supplied with an increase in farm returns, while the amount of labour hired reduces with a rising wage. The study argued that while raising farm wages might affect labour hiring decisions, it is also an incentive that allows household members to sell some of their labour time.

Suggested Citation

  • John Chiwuzulum Odozi & Iredele Emmanuel Ogunbayo, 2026. "On-Farm Wages And Labour Supply In A Rural Agrifood System: Evidence From Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 13(1), pages 1-14.
    • Handle: RePEc:ris:ilojep:022580
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    File URL: https://www.ijep.org/index.php/volume-13-issue-1-2026/108-on-farm-wages-and-labour-supply-in-a-rural-agrifood-system-evidence-from-nigeria
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    File URL: https://www.ijep.org/issues/volume13issue132026/v1/Article%201_Odozi(2026).pdf
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    Keywords

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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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