THE JOINT LABOUR DECISIONS OF FARM COUPLES: A CENSORED RESPONSE ANALYSIS OF ON-FARM AND OFF-FARM WORK

Hild-Marte Bjørnsen () and Erik Biorn
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Hild-Marte Bjørnsen: Norwegian Institute for Urban and Regional Research, Postal: Sinsenveien 47 B, P.O.Box 44 Blindern, N-0313 Oslo, Norway

No 05/2006, Memorandum from Oslo University, Department of Economics

Abstract: Farm couples' labour market responses are partly the qualitative choice of entering the ff-farm labour market and partly the continuous choice of the number of on-farm and 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. This paper presents a unified framework for handling such discrete/continuous choices, involving optimisation of farm production, household consumption, and multiple job-holdings for both husband and wife. A two-equation censoring panel data model is implemented and estimated from Norwegian panel data for 342 farms observed over a ten-year period.

Keywords: Labour; supply.; Agriculture.; Multiple; job-holding.; Time; allocation.; Bivariate; censoring.; Panel; data.; Heterogeneity (search for similar items in EconPapers)
JEL-codes: C34 D21 J22 J43 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2006-03-15
New Economics Papers: this item is included in nep-agr and nep-dcm
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