determinants of off farm work and its effects on farm performance the case of norwegian grain farmers limited attention has been given in the literature to the impact of off farm work on farm performance more knowledge about the determinants of part time farming and its effects on farm performance could help policymakers to introduce better targeted rural development policies the aim in this article is to fill part of the above mentioned gaps by analyzing factors that influence the choices of off farm work by either the farmer alone or jointly by both the farmer and partner and simultaneously examining how off farm work influences farm performance these analyses were based on an unbalanced panel data set from norwegian grain farms during 1991 to 2005 among the determinants of off farm work hours we found that in addition to demographic time trend and some regional effects there was a significant negative effect of farm output on farmers off farm work hours the production function results revealed that off farm work had a positive effect on farm output at first increasing but then decreasing with increase in hours spent in off farm work furthermore our analysis revealed no systematic effect of off farm work on farm technical efficiency

nonpecuniary benefits to farming implications for supply response to decoupled payments we develop a household model wherein farmers allocate labor to maximize utility from leisure consumption and nonpecuniary benefits from farming the model shows that farmers with decreasing marginal utility of income respond to higher decoupled payments by decreasing off farm labor and increasing farm labor resulting in greater agricultural output we then estimate the difference between farm and off farm returns to labor using data from three nationally representative farm household surveys the finding of a large on farm off farm wage differential provides compelling evidence of substantial nonpecuniary benefits from farming

the gatt agreement on trade related investment measures implications for developing countries and their relationship with transnational corporations this article addresses three issues first it argues that the use of trade related investment measures trims by ldcs can only be analysed in the context of their dealings with transnational corporations tncs second it considers the applicability of existing gatt rules to trims and shows that they are inadequate and can pose difficulties for ldcs seeking foreign direct investment by tncs third it suggests a framework for regulating trims as one element of host tnc relations the article concludes with proposals for enhancing the capacity of ldcs in their dealings with tncs

real options approach to inter sectoral migration of u s farm labor the core of the literature on inter sectoral labor migration is based on net present value models of investment in which individuals are assumed to migrate to take advantage of positive wage differentials in this article we argue that a real options approach taken together with the adjustment costs associated with sectoral relocation may provide a basis for explaining the migration of farm labor out of the agricultural sector given the irreversibility of migration decisions and uncertainty in the economy potential migrants might choose to postpone migration even in the face of positive wage differentials using annual u s employment data from between 1948 and 2009 our results indicate that large elasticities between economic incentives and out farm migration are observed after a high threshold of wage differentials between farm and off farm sectors is surpassed

the effect of off farm work on the intensity of agricultural production changes in agricultural production methods have been associated with environmental pressure and a loss of natural habitats this paper explores the extent to which farmer participation in off farm work an increasing phenomenon in most developed countries changes the intensity of agricultural input use focusing in particular on fertilizer and crop protection product use a sample selection model that accounts for both unobserved heterogeneity between farms and the potential simultaneity between farm operations and hours worked off farm is estimated for 2 419 farms in england and wales the econometric evidence indicates that the input intensity of products which have well established links to environmental damage can increase as well as decrease the results suggest that that fertilizer intensity may decline as off farm labor increases while the use of crop protection per hectare increases as off farm work increases

how does land fragmentation affect off farm labor supply panel data evidence from china abstract this article provides a deeper theoretical understanding of the linkages between land fragmentation and off farm labor supply in china andinvestigates this relationship empirically in a more direct way than does the existing literature drawing upon a rural household panel data setcollected in zhejiang hubei and yunnan provinces from 1995 to 2002 we estimate the effects in two steps first we estimate the effect of landfragmentation on labor productivity second we estimate the effect of land fragmentation on off farm labor supply the production function resultsshow that land fragmentation indeed leads to lower agricultural labor productivity implying that land consolidation will make on farm work moreattractive and thus decrease off farm labor supply however the effect of land consolidation on off farm labor supply is not signi cant one likelyexplanation for this result may be the potentially imperfect labor markets jel classi cations j22 q15 q24 r23 keywords

economists capitalists and the making of globalization north american free trade in comparative historical perspective why did globalization happen current explanations point to a variety of conditions under which states have made the free market policy changes driving international economic integration since the 1980s such accounts disagree however about the key actors involved this article provides a reconciliation showing how two different combinations of actors and two different political economic pathways have led to globalization in recent decades in developed countries mobilization by business has been central elsewhere technocrats both constrained and empowered by international finance have pursued globalization more independently of business in both contexts economists technical authority has helped legitimate liberalization despite the limited diffusion of their ideas the article validates and elaborates this model using a comparative historical study of how the united states canada and mexico proposed negotiated and ratified agreements for free trade in north america

farming efficiency and the determinants of multiple job holding by farm operators the extent to which farm families engage inoff farm employment activities is a topic ofcentralimportancetounderstandingthe nan cial well being of farm households the degreeof nancial stress experienced by u s farmfamilies is always a concern to policy makers yet policyconsiderationsoftenignorethesub stantial involvement of most farm householdsin nonfarm labor markets it has been shownthat whentheentirefarmhouseholdisconsid ered the average u s farm household hasa higher total income and much greater assetholdings than is the case for nonfarm house holds see e g goodwin mishra et al pre sented data for 2000 suggesting that when allfarms are considered 92 of total householdincomecamefromnonfarmsources ofcourse such gures depend on how one chooses to de neafarm whenoneconsiderslargeandverylarge commercial farms the share of farm in come in total household income ranges from50 to 75

why farmers quit a county level analysis we identify the effects of alternative explanatory variables on the propensity of u s farmers to cease farming with a particular emphasis on understanding the roles of off farm employment and federal farm program payments conventional ordinary least squares analysis using all counties suggests that off farm employment has no statistical effect on the net number of farmers quitting between 1987 and 1997 ceteris paribus a more refined analysis which separates counties losing farmers from those that gained farmers reveals subtle and less clear cut effects of off farm employment and federal program payments on farm exits copyright 2001 oxford university press

off farm work decisions of husbands and wives joint decision making theoretical and econometric models are developed to examine joint wage labor participation and hours decisions of a husband and wife in farm households the econometric model is multiple equation and recursive the specification of the off farm labor supply equation of the husband wife depends on whether his her wife husband does or does not work off the farm and this structure is endogenous the model is fitted to data for iowa farm households the main conclusion is that the off farm labor supply equation of a married individual differs significantly depending on whether his or her spouse also works for a wage copyright 1989 by mit press

human capital producer education programs and the adoption of forward pricing methods using a sample of 509 kansas producers we evaluate factors affecting adoption of forward pricing methods we focus on producers human capital accumulation and its effect on adoption of forward pricing techniques probit models are employed to evaluate producers participation in educational programs and their forward pricing adoption decisions tobit models are employed to evaluate individual levels of adoption of these techniques in the marketing of wheat corn grain sorghum soybeans and cattle

putting trims to good use abstract trade related investment measures trims currently on the agenda of the uruguay round are the subject of a considerable debate these measures include both regulations and incentives governing the operations of foreign firms in developing countries it is frequently argued that such measures distort trade flows and lower rather than enhance the contribution of foreign direct investment to the development objectives of the host countries this paper examines these arguments and suggests that some though not all trims judiciously used may promote development objectives

determinants of economic well being among u s farm operator households participation in government programs has a mild impact on the economic well being of u s farm households major factors that determine farm household prosperity are the primary operator s education level and ethnicity education level of the spouse and other characteristics such as forward purchasing of inputs use of contract shipping of products having a succession plan farm ownership and location in a metro area this article uses the 2001 agricultural resource management survey arms as well as relative and an absolute measure to assess u s farm households economic well being the relative measure compares the income and wealth position of farm households relative to median income and median wealth of the general population the absolute measure adds annualized wealth to a farm household s income

off farm work decisions of farm couples estimating structural simultaneous equations with ordered categorical dependent variables we estimate a full system of structural farm and off farm labor supply equations of farm couples as a set of simultaneous equations with categorical dependent variables in a first step the reduced form is estimated by ordered probit with unknown thresholds then the identified structural coefficients are recovered from the reduced form coefficients through minimum distance estimation using census data from israel we find that for men a one hour increase in farm labor supply causes a one hour decrease in off farm labor supply but not for women this could not have been found without estimating structural coefficients

an empirical model of labor supply in a life cycle setting this paper formulates and estimates a structural intertemporal model of labor supply using theoretical characterizations derived from an economic model of lifetime behavior a two step empirical analysis yields estimates of intertemporal and uncompensated substitution effects which provide the information needed to predict the response of hours of work to life cycle wage growth and shifts in the lifetime wage path

impact of off farm labor supply on food expenditures of the farm household abstract farm households diversify their income sources by working off the farm this is a risk management strategy that is used by farm households in both developed and developing countries income diversification via off farm work is associated with higher incomes and food consumption however little is known about the association between off farm work and farm household food expenditures in an effort to bridge this gap this study attempts to assess the impact of off farm work decisions by the operator and or the spouse on the food expenditures of the farm household using a nationwide farm household survey in the united states and new econometric method we find that the decisions of the operator and or the spouse to work off the farm are significantly interrelated 29 however these two decisions affect food expenditures in different ways the operator s off farm work decision is positively related to food expenditures while the spouse s decision is negatively associated with expenditures on food by the farm household

impact of off farm income on food expenditures in rural bangladesh an unconditional quantile regression approach this study examines the effects of off farm income on food expenditures of rural bangladeshi households our analysis yields unbiased estimates of the unconditional impact of off farm income on food expenditures and reveals the heterogeneous effects that occur across the distribution of total food consumption expenditures the findings suggest that the impacts of off farm income are uniformly positive across the unconditional quantile regression and significantly increase food consumption expenditures for all quantiles except for the 25th quantile in addition we found that schooling experience and location of the household increase the food expenditures of rural households most importantly this article argues that female headed rural households in which the female works off the farm tend to have significantly lower food expenditures

how valuable is on farm work to farmers in this article we estimate a rural household model that allows specific tastes for working on farm and can fit the data as well as the general model of lopez we use two samples that are matched by individual characteristics and adopt the method for matched surveys proposed by arellano and meghir we replicate using french data the empirical finding of elhorst who reports evidence that implicit wages of on farm family labor are significantly below off farm wages we then provide estimates of the lower bounds for preferences for on farm work for males and females which are significant and positive

agritourism and off farm work survival strategies for small farms this study considers agritourism and off farm work as income diversification choices simultaneously and analyzes factors influencing such choices further the study assesses the impact of agritourism off farm work and both on gross cash farm income and total farm household income we utilized large set of nationwide farm survey data and selectivity based multinomial choice model an important finding of our study is that small farms have higher household income if they choose both income diversification strategies rather than a single strategy results suggest that education age of the operator financial condition and location of the farm are important factors driving income diversification alternatives finally our study indicates that accounting for selectivity is essential to ensure unbiased and consistent estimates

welfare implications of reduced government subsidies to farm families accounting for fringe benefits in the past three decades farm families have relied on government payments and off farm income to reduce income risk and increase total household income studies have shown that as the income effect dominates government payments tend to reduce off farm labor of farm operators and spouses but that may not be true if one accounts for fringe benefits associated with off farm employment additionally with looming budget deficits and the possibility of a reduction in decoupled government payments farm families may be facing an altered economic environment our study addresses this issue by examining the links between government farm program payments and the ever important role of fringe benefits in the off farm employment of farm couples results from farm level data actually show that the marginal effect of government payments on hours worked off farm will decrease in magnitude when accounting for fringe benefits ceteris paribus these results support the notion that farm households welfare loss stemming from reduced decoupled payments may be overstated when models exclude fringe benefits from the estimation of off farm labor supply

wage labour activities by agricultural households in nicaragua this article considers wage labour activities by agricultural households in nicaragua it analyses the role of 1 comparative advantage as determined by individual and household characteristics and 2 agricultural conditions and market imperfections in shaping wage labour supply an econometric specification is developed which allows for random household specific effects results reveal that non agricultural wage work is largely determined by comparative advantages whereas agricultural wage work is used to deal with a number of agricultural conditions and market imperfections

comparative risk aversion abstract even when some risk prospects have no certain equivalents increases in risk aversion are equivalent to concave transformations of the utility function strict or sharp increases in risk aversion correspond to concave and non linear or strictly concave transformations respectively

off farm labor supply responses to permanent and transitory farm income a sample of iowa farm couples is used to evaluate whether off farm labor supply decisions respond to permanent and transitory components of farm income off farm labor supply of both spouses declines in response to increases in permanent farm income farm wives also reduce off farm labor supply in response to positive transitory farm income shocks consequently one mechanism farm households use to smooth their goods consumption when facing fluctuating farm income is to modify their consumption of leisure ability to smooth goods consumption does not imply the absence of liquidity constraints among farm households unless leisure consumption is also smoothed

labour force transitions among low wage married couples a simultaneous probability model interdependence in the labour force transitions of low income married couples is studied it utilizes a simultaneous probability model in which each person s job exit depends in part on the job transitions of their spouse estimates are based on data from the seattle denver income maintenance experiments the evidence appears to indicate that wives emulate the nonwork status of their husbands wives of exit prone husbands are themsleves more exit prone and less likely to enter employment evidence in favour of reverse dependence of husbands status on wives exits appears to be weak and imprecise

the supply of off farm labor a random coefficients approach 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

an empirical analysis of the demand for multiple peril crop insurance knowledge of factors affecting farmer purchases of crop insurance is essential for evaluating the soundness and profitability of crop insurance programs despite this importance the demand for crop insurance has received limited empirical attention the present paper reports on an empirical assessment of the demand for crop insurance by iowa corn producers adverse selection in the insured pool suggests that producers with differing levels of loss risk have different demand elasticities loss risk is included in the empirical analysis and is found to influence the elasticity of demand results show average demand elasticities of about 0 32 for relative insured acres and 0 73 for liability per planted acre implications for the actuarial soundness of the industry are provided

parametric and semiparametric modeling of the off farm labor supply of agrarian households in transition bulgaria the reaction of labor marketsto economic reforms is an important indicator of the progress of transition because of diminished government support and the breakup of state and collective enterprises labor market adjustments in the transition economies have been particularly severe in the agricultural sector thisarticle evaluatesthe off farm labor market for a sample of agrarian households in transition bulgaria we give particular attention to the distributional assumptions that underlie standard approaches to the evaluation of labor supply a variety of specification tests are considered and support for standard maximum likelihood estimates which rely on normality as a maintained hypothesis is mixed alternative semiparametric distribution free estimators are also considered the empirical results indicate that five years after the initiation of the transition off farm labor supply patterns for bulgarian agricultural households are similar to what is commonly observed in developed market economies labor supply is positively affected by factors such as education and work experience which are hypothesized to increase off farm wages social benefit programs providing monetary or in kind support payments are shown to significantly decrease off farm work copyright 2002 oxford university press

the future of farm policy analysis a household perspective farms farmers farm families and even farm policy have changed since the new deal now it is time to bring the methods of farm policy analysis and the scope of data collection up to date agricultural economics by tradition an empirical discipline can once again offer important insights into the design implementation and effectiveness of policy to succeed in this century though requires an emphasis on understanding microeconomic behavior at the farm household level

intellectual property protection and antitrust in the developing world crisis coercion and choice after the economic crisis of the early 1980s developing countries adopted new policies regarding intellectual property protection only as a result of a coercive u s strategy consistent with a neorealist explanation based on power targeted countries have complied only on paper not in practice however in contrast hegemonic powers have not employed overt coercion in the area of antitrust policy consistent with interpretivist neoliberalism which emphasizes learning and voluntarism a nuanced analysis of power and ideas is necessary to account for the differences between the cases the different mechanisms through which the new policies have been adopted suggest different prospects for these new policies

global market shocks and poverty in vietnam the case of rice world food prices have experienced dramatic increases in recent years these shocks affect food importers and exporters alike vietnam is a major exporter of rice and rice is also a key item in domestic production employment and consumption accordingly rice price shocks from the world market have general equilibrium impacts and as such their implications for household welfare are not known ex ante in this paper we first present a simple framework for understanding the direct and indirect welfare effects of a global market shock of this kind second we quantify the transmission of the price shock from global indicator prices to domestic markets third we then we use an applied general equilibrium age model to simulate the effects of domestic price changes in more detail fourth a recursive mapping to a large nationally representative living standards survey permits us to identify in detail the ceteris paribus effects of the shock on household incomes and welfare in this analysis interregional and intersectoral adjustments in the labor market emerge as key channels transmitting the effects of global price shocks across sectors and among households

modelling labour decisions of french agricultural households a joint model of labour decisions for farm couples is presented attention is given to operator and spouse participation decisions in the off farm labour market as well as the decision to use hired farm labour farm household labour choices which include both on farm and off farm work decisions and hired labour decisions are thus modelled as a household joint process the model is applied to a sample of french farm households empirical results illustrate the importance of spouse decisions on off farm labour participation and supply function structure they also show that operator labour and hired farm labour are complementary but wife labour and hired farm labour are substitutable

multiple job holdings among dairy farm families in new york and ontario abstract previous empirical studies of multiple job holding have tended to focus on the characteristics of those obtaining off farm employment and the factors affecting the hours supplied to those obtaining off farm activities none of these studies have explicitly addressed the reasons behind the decision to seek off farm employment neither have they been able to examine in depth the important issue of how this major component of the farm sector responds to alternative policies since most studies have used cross sectional data for a given region a comparison between countries would permit the analysis of how multiple job holding responds to differing government policies the purpose of this paper is to examine the reasons for and factors affecting multiple job holdings of dairy farm families in neighboring regions of two counties united states and canada the bordering regions of new york and ontario have similar geographic conditions but significantly different farm support and social service policies the results indicate the importance of farm income on why people work off the farm and provide evidence of multiple job holding as a flexible mechanism for coping with changes in the economic environment facing the household for operators the driving characteristics influencing off farm labor participation is the farm s financial position the supply managed milk marketing system ensures higher and more stable returns for ontario dairy farm labor in contrast it is family demographics educational level and social support policy that appears to largely influence spousal off farm employment decisions free medical care in ontario lowers the reservation wage for household members the effect of these farm and social support policies on the relative returns to labor in agriculture and non farm employment explains the lower participation rate and hours supplied in off farm work by both operators and hours supplied in off farm work by both operators and spouses in ontario dairy farm household

risk and farm operator labour supply this study uses a large increase in us federal crop insurance subsidies as a natural experiment to identify the importance of risk for farm operator labour supply subsidy increases induced greater crop insurance coverage which in turn reduced farmers financial risks crop insurance participation data are merged with farm level census of agriculture data from 1992 and 1997 to compare how individuals off farm labour supply changed in response to the policy induced change in insurance coverage the empirical approach controls for unobserved heterogeneity and accounts for the censored nature of the data it is found that greater insurance coverage reduces the off farm labour supply of operators who produced at least 100 000 of output and increased the labour supply of small farm operators who produced less than 25 000 of output

wage functions and occupational selection in a rural less developed country setting economists are just beginning to develop empirical knowledge about the basic relationships that determine the distribution of incomes and allocation of resources in the poor rural regions of the world understanding interactions between agriculture and the rest of the economy is particularly important in this context this paper empirically investigates the allocation of human resources between farm work and other jobs and the compensation received by individuals for their work in agriculture and elsewhere specifically two related tasks are undertaken in this paper 1 the estimation of wage functions and 2 the estimation of functions determining the allocation of time among occupations there have been a series of papers which estimate the earnings function using data from poor countries for examples see blaug 1974 chiswick 1977 and valdes 1971 however this study focuses not on total earnings but on the wage rates a person may earn in labor market work because the wage rate is the relevant price of time for many allocative decisions for example in dividing the work year between self employed farming and work as an employee off the farm a key price is the potential wage rate the person can earn in the labor market for discussion and evidence on this issue see sumner 1978 recently a few studies have appeared which illustrate the importance of understanding potential wage variations across individuals in less developed countries rosenzweig 1978 uses wage estimates from aggregate indian data in a model determining the impact of land reform bardhan 1979 develops wage functions from a sample survey in rural india as a step in estimating labor supply for rural households kusnic and davanzo 1980 use wage functions to impute potential incomes and to measure the full income distribution these previous studies illustrate the importance of understanding the determinants of market wages the present paper develops wage functions in more detail focusing especially on industrial differentials in many rural areas employment opportunities may be usefully categorized into 1 self employment mainly on small farms 2 work for wages on large farms and 3 work for wages in non farm industries the combination of selfemployment and work as an employee is also important in many rural areas in both rich and poor countries this paper examines the impact of personal characteristics on the choice to participate in work for wages and on the choice of industry these estimates also form a basis for studying industrial wage differentials tentative estimates of the dependence of participation on expected wages are also presented below the empirical analysis in this paper is based on a 1974 sample of five villages in central guatemala see corona 1978 and stein 1978 one village petapa is larger richer and more urban than the others it lies south of guatemala city within commuting distance of the capital the other villages are outside the capital city region the population sampled is almost exclusively ladino spanish culture as opposed to indian data are available on the earnings hours of work industry age schooling literacy and village of 1 005 male heads of households approximately one third of the sample work as both self employed farmers and hired workers and most of these men work on fincas large plantations another quarter of the sample work as self employed farmers and do no work for wages the suburban village has mostly nonagricultural workers whereas the four other villages have predominantly farmers and farm employees in received for publication june 21 1979 revision accepted for publication december 31 1980 north carolina state university research on this paper began while i was a rockefeller foundation supported post doctoral fellow in the labor and population group of the economics department of the rand corporation and continued at north carolina state university supported by the agricultural research service at rand robert newman served as my research assistant and at n c state james cochell provided able assistance i have benefited from the comments of colleagues at both institutions and from members of the labor economics workshop at the university of north carolina at chapel hill i also thank two anonymous referees for useful suggestions this is paper number 6558 of the journal series of the north carolina agricultural research service raleigh n c

the demand for housing in spain an endogenous switching regression analysis housing demand in spain has been studied by using data disaggregated into primary and secondary housing demands it is found that demand for both types of housing area indeed related and that they are both considered necessities thus suggesting that their consumption ought to be modelled as a joint decision moreover it is found that traditional determinants of housing demand affect primary and secondary home demands differently these differences are attributable to the following economic rationales need for asset holdings diversifications relative high cost of home ownership versus rental in choice locations and differences in land demand intensity across regions in sum the findings suggest that policy makers in spain contrary to popular beliefs must consider secondary homes an integral part of households accommodation need

the determinants of vinegrowers employment and policy implications the case of a greek island this study investigates the employment of vinegrowers on a greek island samos where there exist attractive alternative employment opportunities particularly in the tourist sector the recent dramatic decline in the number of vinegrowers has been of great concern particularly to wine producers policy makers and local authorities because such a pattern has had and most importantly will have serious economic social and environmental implications the focus of this paper is on two issues first some descriptive statistics on the demographics of vinegrowers and characteristics of vineyards are presented and second a probit model is developed to identify the demographic and other determinants of the probability of off farm and off vineyard work participation the most important source of data information is primary data collected by the authors using a questionnaire which was completed by a representative sample of vinegrowers from the island of samos the empirical findings suggest that the promotion of vinegrowing requires policies that will enlarge the size of vineyards promote investments in human and physical capital and improve the public infrastructure

farm income variability and the supply of off farm labor if farmers are risk averse greater farm income variability should increase off farm labor supply this effect is confirmed for a sample of kansas farmers off farm employment of farmers and their spouses is also found to be significantly influenced by farm experience off farm work experience farm size leverage efficiency and farm specific education in addition farm operators and spouses who receive significant income support through government farm programs are less likely to work off the farm this may suggest that policy changes reducing farm income support payments may increase off farm employment of farmers and their spouses

off farm work technical efficiency and rice production risk in taiwan this article investigates the differences in yield production production efficiency and yield risk for farmers both with and without off farm work using a nationwide survey of rice farmers in taiwan we estimate two stochastic production frontier models that accommodate technical inefficiency and production risk simultaneously for farmers both with and without off farm work the stochastic dominance criterion is then applied to compare the differences in the distributions of the estimated technical efficiency and yield risk between groups the empirical results indicate that these two groups of farmers use resources in different ways and off farm work is not necessarily associated with lower technical efficiency for farmers in the lower percentiles of the efficiency distribution those with off farm work are more efficient than their counterparts without off farm work in addition farmers with off farm work face higher production risk and this result is robust for the entire distribution

labor income and risky investments can part time farmers compete abstract in the developed countries a majority of farm households receive at least as much income from nonfarm sources as from the farm such part time farms have survived inspite of lower returns than full time farms this paper considers when lower returns to part time farming could be compensated by risk reduction due to diversification of income sources the paper uses a dynamic portfolio choice model with labor income the model and results could be applied in other contexts as well

government policies and graft in an economy with endogenous labor supply abstract this paper is an extension of marcouiller and young s am econ rev 85 1995 630 paper which shows that in a two good economy with constant labor supply the government can always increase graft by squeezing the formal sector out of existence in this paper we find that if individuals choose the amount of labor they supply the government can increase graft by eliminating formal production in relatively rare cases

effects of wto accession on policy making in sovereign states preliminary lessons from the recent experience of transition countries one of the most remarkable success es of the world trade organization in recent years has been the expansion of wto membership and the continued stream of applications of countries to accede to the wto of the 43 countries that have applied to accede the wto under article xii since january i 1995 approximately one half are countries in the process of trans ition from a planned to a market economy ten of the 14 countries that have already completed their accession process and between 9 and 13 countries depending on whether east asian countries are included or not of the 28 countries negotiating their accession are trans ition countries clearly the wto represents a powerful attraction for countries in transition cit which treat their wto membership as a stamp of approval of their policies and the admission into the international community a feat quite important for crt that have been isolated from world markets for more 50 years

family composition and off farm participation decisions in israeli farm households this article studies the relationship between the off farm participation behavior of farm operators and their spouses and the demographic composition of the household we focus on farm families without parents siblings or partners and examine the effects of the existence of elderly children of the farm couple we find that both the father and the mother tend to reduce their participation in off farm work as the number of elderly children rises this result holds even after controlling for observed characteristics we also find that the effect of elderly children stems from considerations related to both farm production and household production

determinants of nonfarm earnings of farm based husbands and wives in northern ghana the nonfarm work participation decisions of married men and women in rural northern ghana were jointly and separately estimated for married couples through a bivariate probit using recent survey data selectivity bias was corrected for in estimating wage offer and labor supply equations using heckman s procedure education experience infrastructure distance to the capital and population density as well as interactions between education and infrastructure and between education and distance to the city were found to be significantly related to the probability of nonfarm labor market participation wages and the amount of nonfarm labor performed with significant differences by gender

off farm work and technical efficiency on u s dairies in this study we investigate the impact of an increase in farm households off farm work on technical efficiency te of u s dairies we present a theoretical framework that implies that an increase in farm household off farm work decreases te we use two nationally representative samples of u s dairies 2010 and 2005 agricultural resource management surveys and a parametric approach stochastic frontier analysis to empirically test the hypothesis results are generally consistent with the hypothesis and show that an increase in off farm work by the farm household is associated with a significant decrease in te in addition results show that there is a statistically significant difference in te between small medium and large farms small farms are associated with significantly higher off farm work and have lower te than large farms which implies that less off farm work by households with larger farms is at least partially responsible for the evidence of economies of scale in the u s dairy industry

rural electrification and household labor supply evidence from nigeria in nigeria the most populated african country rural electrification is a critical issue because of the low household electrification rate and the poor quality of the grid this energy poverty has harmful economic and social consequences in rural areas such as low productivity lack of income generating opportunities and poor housing conditions in this paper we consider electrification as a technical shock that may affect household time allocation using the 2010 2011 general household survey we investigate how electrification affects female and male labor supply decisions within rural households in nigeria focusing on husband wife data we consider potential dependence in spouses labor supply decisions and address the challenge of zero hours of work using a recent copula based bivariate hurdle model deb et al 2013 in addition an instrumental variable strategy helps identify the causal effect of elec trification our results underline that this dependence in spouses labor supply decisions is critical to consider when assessing the impact of electrification on these outcomes electrifi cation increases the working time of both spouses in the separate assessments but the joint analysis emphasizes only a positive effect of electrification on husbands working time in line with the household labor supply approach our findings highlight that within the household the labor supply decisions of one spouse significantly affect those of the other spouse thus if we neglect the effect of electrification on the spouse of the individual examined we may fail to assess how this individual has been actually affected by this common shock on both spouses our results suggest that these within household relationships promote husbands working time at the expense of wives working time

the impact of coupled and decoupled government subsidies on off farm labor participation of u s farm operators with the 1996 farm act the united states introduced payments that were designed to be decoupled labor allocation choices are likely to be affected by receipt of payments and income from off farm jobs has been the major source of income for most farm households for sometime this article examines whether the 1996 change has affected the off farm labor participation of farm households we conclude that the observed increase in off farm participation of farm operators who received payments was not the result of the 1996 policy change government payments whether coupled or decoupled have a negative effect on off farm labor participation

nonfarm employment agricultural intensification and productivity change empirical findings from uganda this article uses panel data from the living standards measurement study integrated surveys on agriculture for uganda to assess the farm level effects of nonfarm employment on agricultural intensification and productivity change a sample selection model is used to account for both unobserved heterogeneity and potential simultaneity between agricultural production and nonfarm income results show that nonfarm employment can have differential impacts on farm technology intensity and productivity nonfarm income is found to have a positive impact on farm hired labor and improved seed intensity a negative effect on on farm family labor use and no significant impact on fertilizer soil water management and joint use of farm technologies the econometric evidence also indicates that agricultural productivity declines as nonfarm income increases taken together our findings reveal important trade offs between nonfarm employment and income and farm productivity growth under smallholder agriculture the results indicated that targeted policies are required to reduce these potential trade offs between nonfarm employment and agricultural intensification and productivity change

who does dot respond to the agricultural resource management survey and does it matter the agricultural resource management survey is the primary annual source of information on u s farms but in a typical year one third of sampled farms do not respond we use census of agriculture data to study nonresponse to the survey and how it affects estimates in two econometric models despite larger farms responding less the coefficients estimated from the respondent subsample always fall inside confidence intervals based on draws from the full sample of respondents and nonrespondents although nonresponse bias can vary by application the findings suggest that bias is unlikely to undermine conclusions based on econometrics using respondent data

does risk matter the case of wage labour allocation by owner cultivators this study analyses the impact of revenue risk on the hiring out behaviour of owner cultivators since hiring out is not certain labour market risk is also allowed for a large sample of owner cultivators residing in semi arid regions in india and hence subject to high production and labour market risks is used for this purpose it is found that possibly because production risks carry forward into the local labour market households are unable to use the labour market as a hedge against production risk we also find that labour force participation is positively affected by increases in the real wage rate a result that is contrary to the findings of earlier studies using data from less developed agriculture several other insights also result

the off farm labor supply of farmers theoretical and empirical models are developed to examine the off farm wages labor force participation and hours of work of farmers econometric estimates use data from a 1971 survey of illinois farmers the off farm wage depends on farmer human capital and the local labor market the major result confirms the sensitivity of off farm work to economic incentives a 10 increase in the off farm wage entails an 11 increase in hours of off farm work holding farm characteristics constant results also indicate effects of seasonality risk and life cycle factors on off farm work

job creation and job destruction in the eu agriculture this is the first paper to study job creation and destruction in eu agriculture we disaggregate gross employment patterns and net job flows into detailed intra sectoral labour adjustment dynamics based on a unique eu wide farm level panel dataset for 1990 2005 we find that 1 job creation and destruction rates in eu agriculture are comparable to other sectors 2 there is some evidence of ongoing substitution of family labour for hired labour 3 there are important differences in job creation and destruction rates between different member states 4 these differences can be attributed to structural differences across countries sectors and farm types 5 time variation of job reallocation fluctuates countercyclically and 6 idiosyncratic effects are the main driver of time variance in job reallocation

investment policies in the gatt host country policies toward inward direct investment can have predictable effects on trade flows trade related investment measures trims such as local content requirements and minimum export requirements have recently come under official scrutiny in the general agreement on tariffs and trade this paper examines the economic and political context of the uruguay round negotiations on trims in the negotiations investment measures have been treated as a particular instance of a broader problem the proliferation of nontariff trade distortions as with other trade distortions the negotiating strategy has been to identify specific policies to be proscribed or limited however this approach ignores the typical interactions between multinational firms and host governments observed investment regimes are often the result of a lengthy and complex bargaining process while some investment regimes actually alter the allocation of resources in production and trade others affect mainly the distribution of rents between firms and host countries in particular the trade impact if any depends as much on economic conditions as on the specific combination of investment measures imposed this abstract was borrowed from another version of this item

off and on farm labour participation in italian farm households most farms are family business both in developed and developing countries labour allocation choices of farm household members are therefore relevant both for production choices in the farm and for rural labour markets in particular off farm work and combination of on and off farm work pluriactivity are viewed as an efficient allocation of household labour resources moreover labour choice of the children of the farm household is relevant for farm succession in this article we extend previous literature by estimating in an unified framework labour participation choices both for on and off farm work for operators spouses and their eldest children in working age using a five equation multivariate probit

are farmers decisions to work off the farm related to their decisions to participate in the conservation reserve program since both working off the farm and participating in the conservation reserve program crp remove important resources from us agricultural production we utilize two econometric specifications to test hypotheses regarding whether these two decisions by farmers are independent we find statistical evidence that decisions to participate in crp and work off the farm are correlated characteristics of farm households and farm operations affect both decisions directly and indirectly as do local economic conditions and participation in other farm programs to illustrate their importance we simulate the combined direct and indirect effects of changes in decoupled payments and farm size on the probabilities of farm households engaging in these two activities we also illustrate that the probability of engaging in these two activities depends on whether the farm is located in a state or local agricultural district or participates in a related farmland retention program

industrial policy and the wto this paper reviews the objectives and instruments of industrial policy in a changing global context and multilateral rules and discipline the authors provide an analytical review of the objective and justification for industrial policy pursued by countries the importance of having an analytical framework is that it becomes the benchmark against which objectives instruments and outcomes can be measured the use of different instruments for industrial policy is reviewed the paper assesses whether changes have been due to compliance to multilateral and or regional commitments and whether due to unilateral reform efforts the authors focus on the role of industrial policy in the post uruguay round era with a view to the next round of wto negotiations the research examines both the theoretical and applied aspects of industrial policy before surveying the extent to which existing wto rules affect a member s ability to pursue industrial policy objectives the possibilities and implications of revising rules that affect the use of industrial policy instruments in the next round are examined the paper concludes with a final section to review the implications for developing economies

a note on the generalised measures of risk aversion abstract this paper is concerned with generalised scalar measures of risk aversion a measure r which may meaningfully be applied to both unidimensional risks risk in income or wealth and multidimensional risks has been constructed in case of identical preferences we have also constructed an alternative measure of risk aversion r which is shown to be related to the khilstrom mirman measure this relationship explains the nature of the khilstrom mirman measure

do patent rights matter 40 years of innovation complexity and productivity abstract does the rigorous protection of patents advance or retard economic development two decades ago a new global standard of intellectual property swept across developing and industrialized nations through the implementation of the wto s trips agreement many years later the issue of patent rights remains contentious in this paper we focus on the effects of patent rights systems on total factor productivity growth using dynamic panel regression analysis for 70 countries from 1965 to 2009 we show that the effects of stronger or more rigorous patent systems are insignificant for productivity growth in both developing and industrialized countries why does the strength of patents appear to have no impact on productivity classic economic theory suggests that stronger patent systems incentive innovative output with important spill over effects for productivity and growth we offer an alternative explanation using data from the economic complexity index we find that while patents rights are increasingly irrelevant to productivity the relationship between economic complexity and productivity is highly positive and significant our results are consistent with the contributions of the absorptive capacity theory in that they suggest it is not the discovery and ownership of novel products and processes at the innovative frontier that induces productive growth but the ability to adapt replicate and diffuse along the international productive chain

education and off farm work an investigation is presented of the determinants of educational selectivity in a framework that emphasizes the coordination of household members sectoral time allocation is based on members comparative advantage which in turn depends on the utilization and returns to schooling in the farm and nonfarm sectors central to the model is a knowledge spillover hypothesis that workers who participate in off farm work may still contribute knowledge to farm management estimation of the model is based on cross sectional chinese farm household data collected in 1990 from 204 households in sichuan province it is concluded that schooling does not enhance labour productivity when carrying out routine tasks that the contribution to farm efficiency by the most educated members is not affected by their non farm participation and that schooling increases labour market wage rates these empirical results give comparative advantage for the better educated farmers to work off the farm

competition competition policy and the gatt the authors argue that further moves to liberalize trade and to implement existing gatt rules and principles may have a greater impact on global competition than would the pursuit of harmonization of competition policy they also suggest that current gatt rules and case law provide scope for disputes to be brought before the gatt that relate to both the application and the nonapplication of existing domestic competition laws of gatt contracting parties this leads to de facto discrimination between domestic and foreign products little use has been made of the gatt in this connection perhaps existing indirect avenues for raising competition related disputes in the gatt should be pursued more actively this would help identify what specific government policies might be the subject of multilateral negotiations and explicitly incorporated into the gatt framework

rural population growth 1950 1990 the roles of human capital industry structure and government policy human capital raises rural incomes but this effect is swamped by higher returns to human capital in urban markets this leads to brain drain from rural areas populations grow more rapidly in rural counties that have a diversified employment base farm population grows faster or declines more slowly in counties with relatively high farm income and nonfarm populations grow faster in counties with relatively high nonfarm income however higher farm incomes lead to slower nonfarm population growth and vice versa rural county government services financed by local taxes or debt have neutral or negative effects on population growth rural population in the united states increased 53 between 1900 and 1990 this increase is concentrated in the nonfarm rural sector where population has grown to three times its turn of the century level nevertheless there exists a concern that rural areas are threatened by population declines that will gradually erode the ability of communities to provide public services necessary for their citizens eventually the fear is that these communities will become too small to be selfsustaining and will disappear one might ask why these concerns exist in the face of slowly rising rural populations one reason is that the overall rural population increase masks a huge migration of labor off the farm the rural farm population has fallen to one tenth its 1900 level if a strong farm economy is necessary to sustain rural communities then the farm population decline is a threat to the future viability of rural communities on the other hand off farm employment opportunities are increasingly important to the

interrelated labor decisions of farm couples a censored response analysis of off farm work farm couples labor market responses are partly the discrete choice of entering the off farm labor market and partly the continuous choice of off farm working hours given entry such a setting is interesting when examining the increasing occurrence of multiple job holdings among farmers in western economies most existing analyses of off farm labor supply only model the decisions of the farmer not the joint decisions of the farm couple this article presents a framework for handling such interrelated discrete continuous choices involving also farm production and household consumption the derived two equation sub model for husband wife s censored labor responses is estimated from a 10 year norwegian panel data for 342 farms the results agree to some extent with earlier studies but are more informative because of the longer panels which allows a more extensive examination of latent heterogeneity and behavioral persistence because it provides cross effects in the spouses labor supplies the results show some interesting differences between how the independent variables influence the labor supply of operator and spouse this is most evident for the cross effects of education children and wage rate overall the results strongly support applying a panel censoring model that accounts for latent heterogeneity in this context

labor market opportunities and intrafamily time allocation in rural households in south asia this paper utilizes a time allocation survey of a four year panel of households from six villages in semi arid tropic rural india estimates of the inter relationships between adult male female and child market wage rates and time allocated to the market domestic production leisure and schooling by boys and girls are presented the role of individual unobservable heterogeneity and self selection into activity participation is also accounted for the overall results suggest the importance of the opportunity cost of time in intrafamily time use

fishing and nonfishing income decisions the role of human capital and family structure resource dependent households often diversify their income we model demand for remittances and supply of off resource labor as a joint decision and discuss household trade offs we extend the off farm labor supply literature to a rural fishery contrasting our results to common findings in the farm literature and providing empirical evidence of the interdependence between education and family structure in determining income diversification using a unique dataset from malaysia we find that more educated households are less likely to diversify their income with caveats depending on family composition policy implications for resource management in a remittance economy with alternative livelihoods are discussed

an exogeneity test for a simultaneous equation tobit model with an application to labor supply a test of weak exogeneity in the simultaneous equation tobit model is proposed and illustrated using a female labour supply model estimated using cross section data the test statistic can be simply output from any standard tobit maximum likelihood package and is asymptotically efficient the procedure provides consistent estimators for the simultaneous tobit model whose asymptotic covariance matrix is a simple extension of the usual tobit formula we also provide the lagrange multiplier test of weak exogeneity this abstract was borrowed from another version of this item