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Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis

Author

Listed:
  • Möllers Judith

    (Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO), Theodor-Lieser-str.2, 06120 Halle (Saale), Germany)

  • Fritzsch Jana

    (Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO), Theodor-Lieser-str.2, 06120 Halle (Saale), Germany)

  • Buchenrieder Gertrud

    (Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO), Theodor-Lieser-str.2, 06120 Halle (Saale), Germany)

Abstract

This paper provides an analysis of socio-economic characteristics and their influence on farm and non-farm incomes of rural households in Slovenia. With the canonical correlation analysis we use a methodological approach that offers a true multivariate procedure for both sides of the equation. It thus goes beyond a simple pair-wise correlation analysis and also beyond multiple correlation analysis. This rather rarely used statistical method offers interesting insights into many fields of analytical applications. Our results confirm that rural households usually turn towards non-farm employment if distress-push factors prevail. Besides insufficient farm incomes, large household sizes push households into non-farm diversification. Employment opportunities in the non-farm sector- regardless of whether triggered by distress in the household or demand in the non-farm sector- depend strongly on education.

Suggested Citation

  • Möllers Judith & Fritzsch Jana & Buchenrieder Gertrud, 2008. "Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis," South East European Journal of Economics and Business, Sciendo, vol. 3(2), pages 39-48, November.
    • Handle: RePEc:vrs:seejeb:v:3:y:2008:i:2:p:39-48:n:4
    DOI: 10.2478/v10033-008-0013-9
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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. Fritzsch, Jana, 2011. "A Composite Fuzzy Indicator for Assessing Farm Household Potential for Non-farm Income Diversification," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114349, European Association of Agricultural Economists.
    3. Fritzsch, Jana & Möllers, Judith & Buchenrieder, Gertrud, 2011. "Employment diversification of farm households and structural change in the rural economy of the New Member States," IAMO Discussion Papers 134, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Fritzsch, Jana & Buchenrieder, Gertrud & Mollers, Judith, 2010. "Non-farm income diversification of rural farm households in Central and Southeastern Europe: an application of fuzzy set theory," 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia 95321, European Association of Agricultural Economists.
    5. Štefan Bojnec & Kristina Knific, 2021. "Farm Household Income Diversification as a Survival Strategy," Sustainability, MDPI, vol. 13(11), pages 1-16, June.
    6. Meng, Ting & Florkowski, Wojciech J. & Kolavalli, Shashidhara & Ibrahim, Mohammed, 2012. "Food Expenditures and Income in Rural Households in the Northern Region of Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124638, Agricultural and Applied Economics Association.

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    Keywords

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    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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