IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v61y2015i11id244-2014-agricecon.html
   My bibliography  Save this article

Do farmers' old age pension programs affect farm production? Empirical evidence of dairy farms in Taiwan

Author

Listed:
  • Hung-Hao CHANG

    (Department of Agricultural Economics, National Taiwan University, Taiwan)

  • Jiun-Hao WANG

    (Department of Bio-industry Communication and Development, National Taiwan University, Taiwan)

  • Ashok K. MISHRA

    (Morrison School of Agribusiness, Arizona State University, USA)

Abstract

Although a considerable body of literature has examined the determinants of farm production, little is known about the role of the farmers' pension program. This study contributes to this knowledge gap by assessing the impact of the farmers' pension payments on farm production and the labour allocation using the Old Age Farmers' Pension program in Taiwan as a case study. In particular, this study quantified the effect of pension payments on the labour allocation of the farm operator and other family members, hired labourers, as well as on the farm production. A unique sample of 465 dairy farms was drawn from the Agricultural Census survey in Taiwan in 2010. The data set was compiled using the national administrative profile of the pension program in Taiwan in order to access an objective pension status for all recipients of the payments. By estimating an endogenous treatment effect model, it was found that the pension payments decreased the amount of the on-farm work of the farm operator. In contrast, it increased the on-farm labour use of the family members. Moreover, the availability of the pension program decreased the size of farm operation and the farm productivity.

Suggested Citation

  • Hung-Hao CHANG & Jiun-Hao WANG & Ashok K. MISHRA, 2015. "Do farmers' old age pension programs affect farm production? Empirical evidence of dairy farms in Taiwan," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(11), pages 533-541.
    • Handle: RePEc:caa:jnlage:v:61:y:2015:i:11:id:244-2014-agricecon
    DOI: 10.17221/244/2014-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/244/2014-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/244/2014-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/244/2014-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Dewbre, Joe & Mishra, Ashok K., 2007. "Impact of Program Payments on Time Allocation and Farm Household Income," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(3), pages 1-17, December.
    2. Hisham S. El-Osta & Ashok K. Mishra & Mitchell J. Morehart, 2008. "Off-Farm Labor Participation Decisions of Married Farm Couples and the Role of Government Payments," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 311-332.
    3. Cox, Donald & Jakubson, George, 1995. "The connection between public transfers and private interfamily transfers," Journal of Public Economics, Elsevier, vol. 57(1), pages 129-167, May.
    4. Alex Maynard & Jiaping Qiu, 2009. "Public insurance and private savings: who is affected and by how much?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(2), pages 282-308, March.
    5. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
    6. Ky–sti Pietola & Minna V”re & Alfons Oude Lansink, 2003. "Timing and type of exit from farming: farmers' early retirement programmes in Finland," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 99-116, March.
    7. 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.
    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. Xing Ji & Jingwen Xu & Hongxiao Zhang, 2022. "How Does China’s New Rural Pension Scheme Affect Agricultural Production?," Agriculture, MDPI, vol. 12(8), pages 1-23, July.
    2. Tongwei Xie & Changjiang Xiong & Qing Xu & Tianshu Zhou, 2022. "The Impact of Social Pension Scheme on Farm Production in China: Evidence from the China Health and Retirement Longitudinal Survey," IJERPH, MDPI, vol. 19(4), pages 1-13, February.
    3. Berlinschi, Ruxanda & Van Herck, Kristine & Swinnen, Johan F.M., 2011. "Farm subsidies and agricultural employment: The education channel," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99424, European Association of Agricultural Economists.
    4. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, 2011. "Does Common Agricultural Policy Reduce Farm Labour Migration? A Panel Data Analysis Across EU Regions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114597, European Association of Agricultural Economists.
    5. 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.
    6. D’Antoni, Jeremy M. & Mishra, Ashok K. & Barkley, Andrew P., 2012. "Feast or flee: Government payments and labor migration from U.S. agriculture," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 181-192.
    7. Henningsen, Arne & Kumbhakar, Subal C. & Lien, Gudbrand D., 2009. "Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49728, Agricultural and Applied Economics Association.
    8. Ashok K. Mishra & J. Mathew Fannin & Hyunjeong Joo, 2014. "Off-Farm Work, Intensity of Government Payments, and Farm Exits: Evidence from a National Survey in the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 283-306, June.
    9. Pandit, Mahesh & Paudel, Krishna P. & Mishra, Ashok K., 2013. "Do Agricultural Subsidies Affect the Labor Allocation Decision? Comparing Parametric and Semiparametric Methods," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(1), pages 1-18, April.
    10. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, "undated". "Reallocation of Agricultural Labor and Farm Subsidies: Evidence From the EU Regions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126645, International Association of Agricultural Economists.
    11. Jellal, Mohamed, 2009. "Family Institution and Filial Attention Contract," MPRA Paper 17713, University Library of Munich, Germany.
    12. Aldieri, Luigi & Fiorillo, Damiano, 2015. "Private monetary transfers and altruism: An empirical investigation on Italian families," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 1-15.
    13. Fernandez-Cornejo, Jorge & Wechsler, Seth James, 2012. "Fifteen Years Later: Examining the Adoption of Bt Corn Varieties by U.S. Farmers," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124257, Agricultural and Applied Economics Association.
    14. 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.
    15. Khondoker Abdul Mottaleb & Dil Bahadur Rahut, 2019. "Impacts of Improved Infrastructure on Labor Allocation and Livelihoods: The Case of the Jamuna Multipurpose Bridge, Bangladesh," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 750-778, September.
    16. D'Addio, Anna Cristina & De Greef, Isabelle & Rosholm, Michael, 2002. "Assessing Unemployment Traps in Belgium Using Panel Data Sample Selection Models," IZA Discussion Papers 669, Institute of Labor Economics (IZA).
    17. Fidel Gonzalez & Santosh Kumar, 2018. "Prenatal care and birthweight in Mexico," Applied Economics, Taylor & Francis Journals, vol. 50(10), pages 1156-1170, February.
    18. Bagamba, Fredrick & Burger, Kees & Kuyvenhoven, Arie, 2007. "Determinants of smallholder farmer labour allocation decisions in Uganda," 106th Seminar, October 25-27, 2007, Montpellier, France 7920, European Association of Agricultural Economists.
    19. Nikolov, Plamen & Adelman, Alan, 2019. "Do private household transfers to the elderly respond to public pension benefits? Evidence from rural China," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    20. Cheung, Diana & Padieu, Ysaline, 2015. "Heterogeneity of the Effects of Health Insurance on Household Savings: Evidence from Rural China," World Development, Elsevier, vol. 66(C), pages 84-103.

    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:caa:jnlage:v:61:y:2015:i:11:id:244-2014-agricecon. 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: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    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.