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Effect of Farm Income and Off-Farm Wage Variability on Off-Farm Labor Supply

Published online by Cambridge University Press:  15 September 2016

Ashok K. Mishra  and
Duncan M. Holthausen
Ashok K. Mishra
Affiliation:
Resource Economics Division, Economic Research Service, U.S. Department of Agriculture, Washington, DC
Duncan M. Holthausen
Affiliation:
The Department of Economics, North Carolina State University, Raleigh
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Abstract

This study models the effects of variability in farm income and off-farm wages on farm operators' labor allocation decisions. A simple theoretical model is employed to develop hypotheses, which are then tested empirically. Variability in farm income and off-farm wages is predicted to have a positive and negative effect, respectively, on off-farm hours worked. The empirical results confirm these predictions.

Keywords

farm income variabilityoff-farm labor supplyoff-farm wagetime allocation
Type
Articles
Information
Agricultural and Resource Economics Review , Volume 31 , Issue 2 , October 2002 , pp. 187 - 199
Copyright
Copyright © 2002 Northeastern Agricultural and Resource Economics Association 

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