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Intertemporal Analysis Of Employment Decisions On Agricultural Holdings In Slovenia

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  • Juvancic, Luka
  • Erjavec, Emil

Abstract

The paper attempts to quantify determinants influencing dynamics of employment decisions on agricultural households in Slovenia and to test specific aspects of labour reallocation during transition period by application of agricultural household model. Through the use of 1991-2000 panel data for 22,055 farm households, quantitative analysis of intertemporal employment decisions of farm holders is carried out by the use of probit techniques. Determinants tested refer to personal characteristics of reference persons (gender, age, education level, opportunity off-farm income), household characteristics (size, structure),characteristics of the agricultural holding (economic size, labour input,labour intensity) and local labour market conditions. The model results generally confirm the existing empirical evidence on asymmetrical and irreversible participation of holders at the labour market. Despite intensive restructuring of agriculture and profound changes in non-farm labour market in the analysed period, labour supply of farm holders remains rigid. Mobility of labour supply is lower than expected, which can be attributed to the importance of structural problems constraining intersectoral mobility. A marked tendency towards upkeeping of the same employment status is more distincted in the case of holders employed on the farm. A low level of labour supply mobility worsens efficiency of labour allocation on agricultural holdings in Slovenia. Elements of this problem emerge on both, supply (e.g. low level of educational and professional attainment of reference persons) and demand side of labour market (e.g. unfavourable local labour market conditions).

Suggested Citation

  • Juvancic, Luka & Erjavec, Emil, 2003. "Intertemporal Analysis Of Employment Decisions On Agricultural Holdings In Slovenia," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25840, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae03:25840
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    References listed on IDEAS

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    1. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
    2. A. Kimhi, 1994. "Participation Of Farm Owners In Farm And Off-Farm Work Including The Option Of Full-Time Off-Farm Work," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 232-239.
    3. Sadoulet, Elisabeth & de Janvry, Alain & Benjamin, Catherine, 1996. "Household Behavior With Imperfect Labor Markets," CUDARE Working Papers 25044, University of California, Berkeley, Department of Agricultural and Resource Economics.
    4. A Corsi & JL Findeis, 2000. "True state dependence and heterogeneity in off-farm labour participation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(2), pages 127-151, June.
    5. Johan F. M. Swinnen & Liesbeth Dries & Karen Macours, 2005. "Transition and agricultural labor," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 15-34, January.
    6. McNamara, Kevin T. & Weiss, Christoph R., 2001. "On- And Off-Farm Diversification," 2001 Annual meeting, August 5-8, Chicago, IL 20520, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Nakamura, Alice & Nakamura, Masao, 1985. "Dynamic models of the labor force behavior of married women which can be estimated using limited amounts of past information," Journal of Econometrics, Elsevier, vol. 27(3), pages 273-298, March.
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    Citations

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    Cited by:

    1. Pavel Ciaian & Johan F.M. Swinnen, 2007. "Credit Market Imperfections and the Distribution of Policy Rents: The Common Agricultural Policy in the New EU Member States," LICOS Discussion Papers 18307, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. 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.
    3. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, "undated". "Commonalities and Differences in Labour Market Developments and Constraints in Different EU Regions," Factor Markets Working Papers 125, Centre for European Policy Studies.
    4. repec:ags:aieabj:276291 is not listed on IDEAS
    5. 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.
    6. Maria Garrone & Dorien Emmers & Alessandro Olper & Johan Swinnen, 2018. "Jobs and Agricultural Policy: Impact of the Common Agricultural Policy on EU Agricultural Employment," LICOS Discussion Papers 40418, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    7. 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.
    8. Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "The Reallocation of Agricultural Labour across Sectors: An Empirical Strategy for Micro Data," Working papers 155703, Factor Markets, Centre for European Policy Studies.
    9. Brosig, Stephan & Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2009. "Persistence of full- and part-time farming in Southern China," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 360-371.
    10. 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), vol. 4(2), pages 1-15, August.
    11. 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.
    12. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    13. 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), pages 1-7, August.

    More about this item

    Keywords

    Labor and Human Capital;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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