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Off-farm labor supply and fertilizer use

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  • Russell L. Lamb

Abstract

I develop a two-period stochastic dynamic programming model to explain the interaction between fertilizer use and off-farm labor supply. Using a well-known sample of Indian farmers, I find that fertilizer use responds strongly to the village wage and that irrigation raises fertilizer use, while larger farmers use less fertilizer (per acre) than smaller ones. Response to one-sided production shocks, is stronger for female labor, indicating that it is more important for smoothing consumption than male labor.

Suggested Citation

  • Russell L. Lamb, 1996. "Off-farm labor supply and fertilizer use," Finance and Economics Discussion Series 1996-49, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfe:1996-49
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    File URL: http://www.federalreserve.gov/pubs/feds/1996/199649/199649abs.html
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    References listed on IDEAS

    as
    1. Rosenzweig, Mark R, 1988. "Risk, Implicit Contracts and the Family in Rural Areas of Low-income Countries," Economic Journal, Royal Economic Society, vol. 98(393), pages 1148-1170, December.
    2. Robert M. Townsend, 1995. "Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low-Income Economies," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 83-102, Summer.
    3. Saha, Atanu, 1994. "A two-season agricultural household model of output and price uncertainty," Journal of Development Economics, Elsevier, vol. 45(2), pages 245-269, December.
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    Cited by:

    1. Seema Jayachandran, 2006. "Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries," Journal of Political Economy, University of Chicago Press, vol. 114(3), pages 538-575, June.

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