IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v46y2015i2p139-148.html
   My bibliography  Save this article

Impact of off-farm income on food expenditures in rural Bangladesh: an unconditional quantile regression approach

Author

Listed:
  • Ashok K. Mishra
  • Kh. A. Mottaleb
  • Samarendu Mohanty

Abstract

This study examines the effects of off-farm income on food expenditures of rural Bangladeshi households. Our analysis yields unbiased estimates of the unconditional impact of off-farm income on food expenditures and reveals the heterogeneous effects that occur across the distribution of total food consumption expenditures. The findings suggest that the impacts of off-farm income are uniformly positive across the unconditional quantile regression and significantly increase food consumption expenditures for all quantiles, except for the 25th quantile. In addition, we found that schooling, experience, and location of the household increase the food expenditures of rural households. Most importantly, this article argues that female-headed rural households in which the female works off the farm tend to have significantly lower food expenditures.

Suggested Citation

  • Ashok K. Mishra & Kh. A. Mottaleb & Samarendu Mohanty, 2015. "Impact of off-farm income on food expenditures in rural Bangladesh: an unconditional quantile regression approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 139-148, March.
    • Handle: RePEc:bla:agecon:v:46:y:2015:i:2:p:139-148
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/agec.12146
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ashok Kumar Mishra & Krishna Paudel, 2011. "Estimating permanent income and wealth of the US farm households," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1521-1533.
    2. 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.
    3. Thomas Reardon & Eric Crawford & Valerie Kelly, 1994. "Links Between Nonfarm Income and Farm Investment in African Households: Adding the Capital Market Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1172-1176.
    4. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
    5. Jalan, Jyotsna & Ravallion, Martin, 1999. "Are the poor less well insured? Evidence on vulnerability to income risk in rural China," Journal of Development Economics, Elsevier, vol. 58(1), pages 61-81, February.
    6. 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.
    7. Ranis, Gustav & Stewart, Frances, 1993. "Rural nonagricultural activities in development : Theory and application," Journal of Development Economics, Elsevier, vol. 40(1), pages 75-101, February.
    8. 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 471-480, August.
    9. Mishra, Ashok K. & Moss, Charles B., 2013. "Modeling the effect of off-farm income on farmland values: A quantile regression approach," Economic Modelling, Elsevier, vol. 32(C), pages 361-368.
    10. Liedholm, Carl & Mead, Donald C., 1987. "Small Scale Industries in Developing Countries: Empirical Evidence and Policy Implications," Food Security International Development Papers 54062, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 903-921.
    12. weijland, Hermine, 1999. "Microenterprise Clusters in Rural Indonesia: Industrial Seedbed and Policy Target," World Development, Elsevier, vol. 27(9), pages 1515-1530, September.
    13. Ruben, Ruerd & Van den berg, Marrit, 2001. "Nonfarm Employment and Poverty Alleviation of Rural Farm Households in Honduras," World Development, Elsevier, vol. 29(3), pages 549-560, March.
    14. Lanjouw, Peter, 2001. "Nonfarm Employment and Poverty in Rural El Salvador," World Development, Elsevier, vol. 29(3), pages 529-547, March.
    15. Nayga, Rodolfo M., Jr., 1996. "Wife'S Labor Force Participation And Family Expenditures For Prepared Food, Food Prepared At Home, And Food Away From Home," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), pages 1-8, October.
    16. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    17. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    18. Bijan J. Borah & Anirban Basu, 2013. "Highlighting Differences Between Conditional And Unconditional Quantile Regression Approaches Through An Application To Assess Medication Adherence," Health Economics, John Wiley & Sons, Ltd., vol. 22(9), pages 1052-1070, September.
    19. Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
    20. Mishra, Ashok K. & El-Osta, Hisham S. & Morehart, Mitchell J. & Johnson, James D. & Hopkins, Jeffrey W., 2002. "Income, Wealth, And The Economic Well-Being Of Farm Households," Agricultural Economic Reports 33967, United States Department of Agriculture, Economic Research Service.
    21. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    22. Chang, Hung-Hao & Mishra, Ashok, 2008. "Impact of off-farm labor supply on food expenditures of the farm household," Food Policy, Elsevier, vol. 33(6), pages 657-664, December.
    23. Mishra, Ashok K. & Chang, Hung-Hao, 2012. "Can off farm employment affect the privatization of social safety net? The case of self-employed farm households," Food Policy, Elsevier, vol. 37(1), pages 94-101.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pascual, Unai & Barbier, Edward B., 2005. "On- And Off-Farm Labor Decisions By Slash-And-Burn Farmers In Yucatan (Mexico)," Environmental Economy and Policy Research Discussion Papers 31926, University of Cambridge, Department of Land Economy.
    2. Drall, Anviksha & Mandal, Sabuj Kumar, 2021. "Investigating the existence of entry barriers in rural non-farm sector (RNFS) employment in India: A theoretical modelling and an empirical analysis," World Development, Elsevier, vol. 141(C).
    3. Pham, Hung T, 2006. "Rural Nonfarm Employment Under Trade Reform Evidence From Vietnam, 1993-2002," MPRA Paper 6476, University Library of Munich, Germany.
    4. Bhaumik, Sumon K. & Dimova, Ralitza & Nugent, Jeffrey B., 2006. "Pulls, Pushes and Entitlement Failures in Labor Markets: Does the State of Development Matter?," IZA Discussion Papers 2258, Institute of Labor Economics (IZA).
    5. Rakhe Balachandran & Jerrod Penn & Maria Bampasidou, 2023. "Understanding the variation in estimates of off‐farm labour supply elasticities: A meta‐analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 116-134, February.
    6. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    7. Chang, Hung-Hao & Mishra, Ashok, 2008. "Impact of off-farm labor supply on food expenditures of the farm household," Food Policy, Elsevier, vol. 33(6), pages 657-664, December.
    8. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321.
    9. Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
    10. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    11. Thia C. Hennessy & Tahir Rehman, 2008. "Assessing the Impact of the ‘Decoupling’ Reform of the Common Agricultural Policy on Irish Farmers’ Off‐farm Labour Market Participation Decisions," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 41-56, February.
    12. Radosław PASTUSIAK & Magdalena JASINIAK & Michał SOLIWODA & Joanna STAWSKA, 2017. "What may determine off-farm income? A review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(8), pages 380-391.
    13. Marcel Fafchamps & Agnes R. Quisumbing, 1999. "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 369-406.
    14. Reardon, Thomas & Berdegue, Julio & Escobar, German, 2001. "Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications," World Development, Elsevier, vol. 29(3), pages 395-409, March.
    15. Owusu, Victor & Abdulai, Awudu & Abdul-Rahman, Seini, 2011. "Non-farm work and food security among farm households in Northern Ghana," Food Policy, Elsevier, vol. 36(2), pages 108-118, April.
    16. Donnellan, Trevor & Hennessy, Thia, 2012. "Defining a theoretical model of farm households’ labour allocation decisions," Factor Markets Working Papers 140, Centre for European Policy Studies.
    17. Stifel, David, 2010. "The rural non-farm economy, livelihood strategies and household welfare," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 4(1), March.
    18. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
    19. Chikwama, Cornilius, 2010. "The role of rural off-farm employment in agricultural development among farm households in low-income countries: Evidence from Zimbabwe," Journal of Cooperatives, NCERA-210, vol. 4(1), March.
    20. Tanui, Joseph & Groeneveld, Rolf & Klomp, Jeroen & Mowo, Jeremiahs & Ierland, Ekko C. van, 2013. "Explaining investments in sustainable land management: The role of various income sources in the smallholder farming systems of western Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161275, African Association of Agricultural Economists (AAAE).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:46:y:2015:i:2:p:139-148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.