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Do They Come Back Again? The Symmetry and Reversibility of Off-Farm Employment

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  • Weiss, Christoph R

Abstract

A panel of more than 39,000 Upper Austrian farm households has been used to investigate off-farm labour market behaviour. We find the full-time/part-time decision of farmers to be determined by their previous off-farm employment status (state dependence). Whereas an increase in the market wage significantly raises the probability of switching from full-time to part-time farming, a comparable wage reduction does not influence the probability of returning to full-time farming again. We thus conclude that the assumption of full-reversibility necessarily made in empirical models based on cross-section data cannot be supported with Upper Austrian data. Copyright 1997 by Oxford University Press.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:erevae:v:24:y:1997:i:1:p:65-84
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