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How valuable is on-farm work to farmers?

Author

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  • Madior Fall
  • Thierry Magnac

Abstract

In this paper, we estimate a rural household model that allows specific tastes for working on-farm and can fit the data as well as the general model of Lopez (1984). We use two samples that are matched by individual characteristics and we adopt the method for matched surveys proposed by Arellano and Meghir (1992). We replicate using French data, the empirical finding of Elhorst (1994) who gives evidence that implicit wages of on-farm family labor are significantly below off-farm wages. We then provide an estimated lower bound for preferences for on-farm work for males and females.

Suggested Citation

  • Madior Fall & Thierry Magnac, 2002. "How valuable is on-farm work to farmers?," Research Unit Working Papers 0204, Laboratoire d'Economie Appliquee, INRA.
    • Handle: RePEc:lea:leawpi:0204
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    References listed on IDEAS

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    1. 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.
    2. J. G. Tokle & Wallace E. Huffman, 1991. "Local Economic Conditions and Wage Labor Decisions of Farm and Rural Nonfarm Couples," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 652-670.
    3. Weiss, Christoph R, 1997. "Do They Come Back Again? The Symmetry and Reversibility of Off-Farm Employment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(1), pages 65-84.
    4. Ayal Kimhi & Myoung-jae Lee, 1996. "Off-Farm Work Decisions of Farm Couples: Estimating Structural Simultaneous Equations with Ordered Categorical Dependent Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 687-698.
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    1. 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.
    2. Salvioni, Cristina & Sciulli, Dario & Parodi, Giuliana, 2008. "Do Caring Services Affect Off-Farm Work? Evidence from Italy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(2), pages 1-12, June.
    3. Andrés J. Picazo-Tadeo & Ernest Reig-Martínez, 2005. "Calculating shadow wages for family labour in agriculture : An analysis for Spanish citrus fruit farms," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 75, pages 5-21.
    4. repec:hal:journl:dumas-00802135 is not listed on IDEAS
    5. Chabé-Ferret, Sylvain & Subervie, Julie, 2013. "How much green for the buck? Estimating additional and windfall effects of French agro-environmental schemes by DID-matching," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 12-27.
    6. Jeanneaux, P & Desjeux, Y. & Enjolras, G. & Latruffe, L., 2017. "Farm value evaluation: methods and challenges," 21st Congress, Edinburgh, Scotland, July 2-7, 2017 345774, International Farm Management Association.
    7. Hoveid, Oyvind & Raknerud, A., 2008. "Dynamics of income, wealth and capital in Norwegian farm household accounts: A state-space model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44461, European Association of Agricultural Economists.
    8. 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.
    9. 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.
    10. Lien, Gudbrand D. & Kumbhakar, Subal C. & Hardaker, J. Brian, 2008. "Determinants Of Part-Time Farming And Its Effect On Farm Productivity And Efficiency," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6701, European Association of Agricultural Economists.
    11. Peake, Whitney O. & Marshall, Maria I., 2009. "Has the "Farm Problem" Disappeared? A Comparison of Household and Self-Employment Income Levels of the Farm and Nonfarm Self-Employed," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46304, Southern Agricultural Economics Association.
    12. Maria L. Loureiro & Anne Moxnes Jervell, 2005. "Farmers' Participation Decisions regarding Agro-Tourism Activities in Norway," Tourism Economics, , vol. 11(3), pages 453-469, September.
    13. Stefan Mann & Laure Latruffe & Werner Hediger, 2010. "On labour productivity to deliver private and public goods –the influence of off-farm income," Working Papers SMART 10-09, INRAE UMR SMART.
    14. Tom Hertz, 2009. "The effect of nonfarm income on investment in Bulgarian family farming," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 161-176, March.
    15. E. Phimister & D. Roberts, 2006. "The Effect of Off-farm Work on the Intensity of Agricultural Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(4), pages 493-515, August.
    16. Gohin, Alexandre, 2006. "Assessing the 2003 CAP Reform: Sensitivity to the Decoupling of Agenda 2000 Direct Payments," Working Papers 18868, TRADEAG - Agricultural Trade Agreements.
    17. Sha, Zhouhao & Ren, Dong & Li, Chengyou & Wang, Zeru, 2024. "Agricultural subsidies on common prosperity: Evidence from the Chinese social survey," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1-18.
    18. Loureiro, Maria L. & Jervell-Moxnes, Anne, 2004. "Analyzing Farm Participation Decisions In Agrotourism Activities In Norway: Some Welfare Implications," 2004 Annual meeting, August 1-4, Denver, CO 19959, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Gardner, Justin G. & Nelson, Carl H., 2007. "Genetically Modified Crops and Labor Savings in US Crop Production," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34919, Southern Agricultural Economics Association.

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    More about this item

    Keywords

    Labor supply; Time allocation; Agricultural labour markets; Farm households;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • 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
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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