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Farm and non-farm incomes of rural households in Slovenia: Canonical correlation analysis

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  • Möllers, Judith
  • Fritzsch, Jana
  • Buchenrieder, Gertrud

Abstract

This paper provides an analysis of socio-economic characteristics and their influence on farm and non-farm incomes of rural households in Slovenia. With the canonical correlation analysis we use a methodological approach that offers a true multivariate procedure for both sides of the equation. It thus goes beyond a simple pair-wise correlation analysis and also beyond multiple correlation analysis. This rather rarely used statistical method offers interesting insights into many fields of analytical applications. Our results confirm that rural households usually turn towards non-farm employment if distress-push factors prevail. Besides insufficient farm incomes, large household sizes push households into non-farm diversification. Employment opportunities in the non-farm sector- regardless of whether triggered by distress in the household or demand in the non-farm sector- depend strongly on education.

Suggested Citation

  • Möllers, Judith & Fritzsch, Jana & Buchenrieder, Gertrud, 2008. "Farm and non-farm incomes of rural households in Slovenia: Canonical correlation analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 3(2), pages 39-48.
    • Handle: RePEc:zbw:espost:234593
    DOI: 10.2478/v10033-008-0013-9
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    References listed on IDEAS

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    1. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920.
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    Cited by:

    1. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    2. Štefan Bojnec & Kristina Knific, 2021. "Farm Household Income Diversification as a Survival Strategy," Sustainability, MDPI, vol. 13(11), pages 1-16, June.
    3. repec:zbw:iamodp:109518 is not listed on IDEAS
    4. Fritzsch, Jana & Mollers, Judith & Buchenrieder, Gertrud, 2011. "Employment diversification of farm households and structural change in the rural economy of the New Member States," IAMO Discussion Papers 109518, Institute of Agricultural Development in Transition Economies (IAMO).
    5. Fritzsch, Jana, 2011. "A Composite Fuzzy Indicator for Assessing Farm Household Potential for Non-farm Income Diversification," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114349, European Association of Agricultural Economists.
    6. Fritzsch, Jana & Buchenrieder, Gertrud & Mollers, Judith, 2010. "Non-farm income diversification of rural farm households in Central and Southeastern Europe: an application of fuzzy set theory," 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia 95321, European Association of Agricultural Economists.
    7. Meng, Ting & Florkowski, Wojciech J. & Kolavalli, Shashidhara & Ibrahim, Mohammed, 2012. "Food Expenditures and Income in Rural Households in the Northern Region of Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124638, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    canonical correlation analysis; Slovenia; rural non-farm sector; diversification;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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