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The Supply of Off-Farm Labor: A Random Coefficients Approach

Author

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  • Daniel A. Lass
  • Conrado M. Gempesaw II

Abstract

A joint model of off-farm labor decisions for farm operator and spouse is presented. Attention is given to operator and spouse participation decisions as well as associated problems of multiple sample selectivity biases. Two-stage fixed and random coefficient methods, corrected for possible selectivity biases, are used to estimate supply function parameters. Results indicate that supply function parameters are random. Variation in important supply parameters is investigated. Results also illustrate the importance of spouse decisions on off-farm labor supply function structure.

Suggested Citation

  • Daniel A. Lass & Conrado M. Gempesaw II, 1992. "The Supply of Off-Farm Labor: A Random Coefficients Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 400-411.
    • Handle: RePEc:oup:ajagec:v:74:y:1992:i:2:p:400-411.
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    Cited by:

    1. Huffman, Wallace E. & El-Osta, Hisham, 1997. "Off-Farm Work Participation, Off-Farm Labor Supply and On-Farm Labor Demand of U.S. Farm Operators," ISU General Staff Papers 199712010800001290, Iowa State University, Department of Economics.
    2. 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.
    3. Ayal Kimhi, 2004. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 502-512.
    4. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March.
    5. Jeremy Michael D'Antoni & Ashok Kumar Mishra, 2012. "Testing dependence using copulas: the case of dual employment," Applied Economics Letters, Taylor & Francis Journals, vol. 19(13), pages 1265-1269, September.
    6. Catherine Benjamin & Ayal Kimhi, 2006. "Farm work, off-farm work, and hired farm labour: estimating a discrete-choice model of French farm couples' labour decisions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 149-171, June.
    7. Catherine Benjamin & Hervé Guyomard & Michel Sollogoub, 1994. "L'offre de travail des femmes. Application à l'agriculture française," Working Papers hal-01594108, HAL.
    8. Alessandro Corsi & Cristina Salvioni, 2012. "Off- and on-farm labour participation in Italian farm households," Applied Economics, Taylor & Francis Journals, vol. 44(19), pages 2517-2526, July.
    9. Alfons Weersink & Charles Nicholson & Jeeveka Weerhewa, 1998. "Multiple job holdings among dairy farm families in New York and Ontario," Agricultural Economics, International Association of Agricultural Economists, vol. 18(2), pages 127-143, March.
    10. Fernandez-Cornejo, Jorge & Hendricks, Chad, 2003. "Off-Farm Work And The Economic Impact Of Adopting Herbicide-Tolerant Crops," 2003 Annual meeting, July 27-30, Montreal, Canada 22130, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Gripp, Sharon I. & Luloff, A.E. & Yonkers, Robert D., 1994. "Reporting Response Rates For Telephone Surveys Used In Agricultural Economics Research," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), pages 1-7, October.
    12. 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, September.
    13. Castro Campos, Bente, 2013. "Human capital differences or labor market discrimination? The occupational outcomes of ethnic minorities in rural Guizhou (China)," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 73, number 73, September.
    14. Catherine Benjamin & Hervé Guyomard, 1992. "Analyse de l'offre de travail des épouses des exploitants agricoles," Post-Print hal-01897088, HAL.
    15. Fernandez-Cornejo, Jorge & Hendricks, Chad, 2003. "Off-Farm Work And The Adoption Of Herbicide-Tolerant Soybeans," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35133, Southern Agricultural Economics Association.
    16. Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
    17. Tavernier, Edmund M. & Temel, Tugrul T. & Li, Farong, 1997. "The Role of Farm Ownership in Off-Farm Work Participation," Agricultural and Resource Economics Review, Cambridge University Press, vol. 26(1), pages 67-81, April.
    18. Mishra, Ashok K. & Paudel, Krishna P., 2008. "Policy Reform and Off-farm Labor Supply by Operators in the Delta Region: A," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6725, Southern Agricultural Economics Association.
    19. Benjamin, Catherine & Kimhi, Ayal, 2003. "Farm Work, Off-Farm Work, And Hired Farm Labor: Estimating A Discrete-Choice Model Of French Farm Couples' Labor Decisions," Discussion Papers 14990, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    20. Ahearn, Mary Clare & El-Osta, Hisham S. & Dewbre, Joe, 2002. "The Impact Of Government Subsidies On The Off-Farm Labor Supply Of Farm Operators," 2002 Annual meeting, July 28-31, Long Beach, CA 19825, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Ayal Kimhi, 2003. "Family Composition and Off-Farm Participation Decisions in Israeli Farm Households," Labor and Demography 0307001, University Library of Munich, Germany.
    22. Findeis, Jill L., 2002. "Subjective Equilibrium Theory of the Farm Household: Theory Revisited and New Directions," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13,2002, Wye Campus, Imperial College 15723, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    23. Corsi, Alessandro & Salvioni, Cristina, 2017. "Once part-timer always part-timer? Causes for persistence in off farm work state of farmers," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(2), September.
    24. Rathmann, C. & Glauben, T. & Loy, J.-P., 2006. "Arbeitsmarktpartizipation landwirtschaftlicher Haushalte: eine empirische Analyse für Schleswig-Holstein," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 41, March.

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