 FARM HOUSEHOLD LABOR ALLOCATION AND HIRED LABOR DEMANDS IN THE MIDWEST U.S.: THE IMPACT OF GOVERNMENT PAYMENTSMaud Roucan-Kane and Roman Keeney No 6711, Working papers from Purdue University, Department of Agricultural Economics Abstract: In addition to farm work, most farm households in developed countries have at least one person working off-farm. The purpose of this paper is to examine if, and how, government payments, personal characteristics and household characteristics affect labor allocation of farm operators and their spouses, and the decisions to hire labor. We estimate an 8-regime multinomial logit model and a three equation multivariate probit model to quantify these impacts. Results indicate that age of household members is consistent with the life-cycle hypothesis on increasing then decreasing labor market par, and is positively associated with demand for hired labor. Hired farm labor and off farm activities increase with the operator education levels. As household size increases, a household member is more likely to work off the farm. Increasing net worth is found to have a positive impact on probability of spouses working on the farm as well as hired labor being used. Both coupled and decoupled payments increase demand for hired labor which is consistent both with farm expansion and reduced family labor time on the farm. Keywords: Agricultural Finance; Farm Management; Labor and Human Capital (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:puaewp:6711 Access Statistics for this paper More papers in Working papers from Purdue University, Department of Agricultural Economics Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.