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Policy Reform and Off-farm Labor Supply by Operators in the Delta Region: A

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  • Mishra, Ashok K.
  • Paudel, Krishna P.

Abstract

Off-farm employment has been an integral part of the emerging structure of production agriculture in the South. Government farm program payments, farm structure, and strong non-farm economy have important impact on labor allocation, farm and non-farm labor, decision of farm operators. The objective of this investigation was to evaluate the determinants of off-farm labor supply for farm operators in the Delta States. Results show that off-farm work, educational level, presence of teenager, and farm tenure positive and significant impact on ff-farm labor supply by farm operators. On the other hand, farm size, household wealth, decoupled and couple farm program payments, and degree of farm diversification have a negative and significant impact on off-farm labor supply by farm operators. the semiparametreic functional formulation of the farm size and household wealth variables were found to perform better than the linear functional form.

Suggested Citation

  • Mishra, Ashok K. & Paudel, Krishna P., 2008. "Policy Reform and Off-farm Labor Supply by Operators in the Delta Region: A," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6725, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeaed:6725
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    File URL: http://ageconsearch.umn.edu/record/6725/files/sp08mi15.pdf
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    References listed on IDEAS

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    1. Mishra, Ashok K. & Holthausen, Duncan M., 2002. "Effect of Farm Income and Off-Farm Wage Variability on Off-Farm Labor Supply," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(02), pages 187-199, October.
    2. Huffman, Wallace E, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 14-23, February.
    3. Huffman, Wallace E., 1991. "Agricultural Household Models: Survey and Critique," Staff General Research Papers Archive 11008, Iowa State University, Department of Economics.
    4. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
    5. Dewbre, Joe & Mishra, Ashok K., 2007. "Impact of Program Payments on Time Allocation and Farm Household Income," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 0(Number 3), pages 1-17, December.
    6. 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.
    7. Ashok Mishra & Barry Goodwin, 1998. "Income risk and allocation of labour time: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1549-1555.
    8. Joe Dewbre, 2006. "The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 393-408.
    9. Lass, Daniel A. & Findeis, Jill L. & Hallberg, Milton C., 1989. "Off-Farm Employment Decisions By Massachusetts Farm Households," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-11, October.
    10. Gronau, Reuben, 1973. "The Intrafamily Allocation of Time: The Value of the Housewives' Time," American Economic Review, American Economic Association, vol. 63(4), pages 634-651, September.
    11. Hisham El-Osta & Ashok Mishra & Mary Ahearn, 2004. "Labor Supply by Farm Operators Under “Decoupled” Farm Program Payments," Review of Economics of the Household, Springer, vol. 2(4), pages 367-385, August.
    12. Ashok K. Mishra & Carmen L. Sandretto, 2002. "Stability of Farm Income and the Role of Nonfarm Income in U.S. Agriculture," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 208-221.
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    Keywords

    Farm Management; Labor and Human Capital;

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