Estimating the Wage Elasticity of Off-Farm Labour Supply of Farmers in Kemubu, Kelantan

S.Y. Tai and T.A. Chew

Journal of Rural Development/Nongchon-Gyeongje, 1986, vol. 09, issue 01

Abstract: Off-farm labour supply is very important in the transformation of agricultural economies to industrial economies. Two econometric models were used to estimate the wage elasticity of off-farm labour supply in Kemubu, Kelantan, Malaysia. A wage elasticity of approximately 2.0 was obtained from both models. The study revealed that severe poverty exist in single-cropped areas outside Kemubu. Farm households are more pressed for time with off-farm employment in double-cropped areas inside Kemubu. The twin-strategies of intensifying paddy cultivation and creating off-farm employment opportunities can be carried out concurrently. To induce farmers to seek off-farm employ­ment to augment farm incomes, off-farm employment opportunities should be created close to farm households and development policies should aim at im­proving the level of educational and vocational skills of farmers.

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
Date: 1986
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:287524

DOI: 10.22004/ag.econ.287524

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