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Has the "Farm Problem" Disappeared? A Comparison of Household and Self-Employment Income Levels of the Farm and Nonfarm Self-Employed

  • Peake, Whitney O.
  • Marshall, Maria I.

This study tests the impact of household and demographic factors on the economic well-being of the farm and nonfarm self-employed using data from the Integrated Public Use Microdata Series. Parametric and nonparametric techniques are used to test for statistical differences in self-employment and household income levels. Further, household and demographic factors are tested for their effect on self-employment income using a censored tobit regression model. The farm self-employed report significantly higher levels of self-employment income. Results reveal that several household and demographic factors significantly impact self-employment income levels for the farm and nonfarm self-employed, with key differences in impacts.

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File URL: http://purl.umn.edu/46304
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Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46304.

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Date of creation: 2009
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Handle: RePEc:ags:saeana:46304
Contact details of provider: Web page: http://www.saea.org/

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  1. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
  2. Robert W. Fairlie & Bruce D. Meyer, 2000. "Trends in Self-Employment among White and Black Men during the Twentieth Century," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 643-669.
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  8. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
  9. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
  10. Madior Fall & Thierry Magnac, 2004. "How Valuable Is On-Farm Work to Farmers?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 267-281.
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  12. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  13. Elhorst, J Paul, 1994. "Firm-Household Interrelationships on Dutch Dairy Farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 21(2), pages 259-76.
  14. 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.
  15. Michael Hout & Harvey Rosen, 2000. "Self-Employment, Family Background, and Race," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 670-692.
  16. Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82.
  17. Bruce D. Meyer, 1990. "Why Are There So Few Black Entrepreneurs?," NBER Working Papers 3537, National Bureau of Economic Research, Inc.
  18. 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.
  19. Clark, Kenneth & Drinkwater, Stephen, 1998. "Ethnicity and Self-Employment in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 383-407, August.
  20. Ani L. Katchova, 2008. "A Comparison of the Economic Well-Being of Farm and Nonfarm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 733-747.
  21. Timothy Bates, 2001. "Financing the development of urban minority communities: lessons from history," Communities and Banking, Federal Reserve Bank of Boston, issue Sum, pages 12-15.
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