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Health Insurance Coverage, Government Payments, and Labor Allocation

Author

Listed:
  • Miller, Cristina D. M.

    (U.S. Department of Agriculture)

  • Mishra, Ashok K.

    (Arizona State University)

Abstract

The aging of the farmer population has led to concern about a shortage of beginning farmers and ranchers. This study investigates the impact of health insurance coverage and participation in government and private insurance programs on off-farm labor allocation decisions of beginning farm-operator households in the United States. We use farm household-level data from the 2015 Agricultural Resource Management Survey and the simultaneous Probit estimation method to estimate our empirical model. Results show that beginning farm-operator households with health insurance coverage from off-farm jobs are 14% more likely to work off the farm. Our analysis also depicts a negative relationship between the receipt of counter-cyclical, conservation, risk management payments, and off-farm work by beginning farm-operator households.

Suggested Citation

  • Miller, Cristina D. M. & Mishra, Ashok K., 2022. "Health Insurance Coverage, Government Payments, and Labor Allocation," IZA Discussion Papers 15262, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15262
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    More about this item

    Keywords

    Agricultural Resource Management Survey; beginning farm-operator household; counter-cyclical payments; risk management payments; health insurance coverage; off-farm labor supply; two-stage simultaneous probit model;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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