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The Joint Labour Decisions Of Farm Couples: A Censored Response Analysis Of On-Farm And Off-Farm Work

Author Info

  • Bjørnsen, Hild-Marte

    ()

    (Norwegian Institute for Urban and Regional Research)

  • Biørn, Erik

    ()

    (Dept. of Economics, University of Oslo)

Abstract

Farm couples' labour market responses are partly the qualitative choice of entering the ff-farm labour market and partly the continuous choice of the number of on-farm and off-farm working hours, given entry. Such a setting is interesting when examining the increasing occurrence of multiple job-holdings among farmers in western economies. This paper presents a unified framework for handling such discrete/continuous choices, involving optimisation of farm production, household consumption, and multiple job-holdings for both husband and wife. A two-equation censoring panel data model is implemented and estimated from Norwegian panel data for 342 farms observed over a ten-year period.

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File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2006/Memo-05-2006.pdf
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Paper provided by Oslo University, Department of Economics in its series Memorandum with number 05/2006.

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Length: 52 pages
Date of creation: 15 Mar 2006
Date of revision:
Handle: RePEc:hhs:osloec:2006_005
Contact details of provider: Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
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More information through EDIRC

Keywords: Labour; supply.; Agriculture.; Multiple; job-holding.; Time; allocation.; Bivariate; censoring.; Panel; data.; Heterogeneity;

Find related papers by JEL classification:

  • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
  • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
  • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
  • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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References listed on IDEAS
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  1. Alfons Weersink, 1992. "Off-farm Labor Decisions by Ontario Swine Producers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(2), pages 235-251, 07.
  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. Amemiya, Takeshi, 1979. "The Estimation of a Simultaneous-Equation Tobit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(1), pages 169-81, February.
  4. Huffman, Wallace E & Lange, Mark D, 1989. "Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 471-80, August.
  5. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
  6. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May.
  7. Lee, Lung-fei & Maddala, G S & Trost, R P, 1980. "Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity," Econometrica, Econometric Society, vol. 48(2), pages 491-503, March.
  8. McElroy, Marjorie B, 1987. "Additive General Error Models for Production, Cost, and Derived Demand or Share Systems," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 737-57, August.
  9. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
  10. Blundell, Richard & Walker, Ian, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," Review of Economic Studies, Wiley Blackwell, vol. 53(4), pages 539-58, August.
  11. Aaberge, Rolf & Colombino, Ugo & Strom, Steinar, 1999. "Labour Supply in Italy: An Empirical Analysis of Joint Household Decisions, with Taxes and Quantity Constraints," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(4), pages 403-22, July-Aug..
  12. Weersink, Alfons & Nicholson, Charles & Weerhewa, Jeeveka, 1998. "Multiple job holdings among dairy farm families in New York and Ontario," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(2), March.
  13. Heckman, James J & Macurdy, Thomas E, 1980. "A Life Cycle Model of Female Labour Supply," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 47-74, January.
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