Exploring within- and between-effects of the factors influencing off-farm work decisions in Switzerland

Dierk Schmid, Swetlana Renner and Daniel Hoop
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Dierk Schmid: Agroscope, Research Division Sustainability Assessment and Agricultural Management, Ettenhausen, Switzerland
Daniel Hoop: Agroscope, Research Division Sustainability Assessment and Agricultural Management, Ettenhausen, Switzerland

Agricultural Economics, 2023, vol. 69, issue 10, 416-425

Abstract: We examine the determinants of off-farm work in Swiss agriculture between 2003 and 2013. By differentiating between the between-farm effects and the within-farm effects, our model provides new insights into the labour allocation process as compared with standard cross-sectional or panel data models. As regards the between-farm variations, our results show that younger farm families without children and farm households with higher non-agricultural education levels of both the farmer and the partner are more involved in working activities outside the farm. However, the within-farm time effects provided a more differentiated picture: impacts of changes in most variables over time tended to be smaller, and in case of two variables show opposite directions. In addition to a negative between-effect of farm income on the allocation of off-farm labour, our results on within-farm effects suggest that an increase in farm income per annual family work unit could be compatible with a higher share of off-farm work during the analysed period.

Keywords: farm households; heterogeneity; labour allocation; off-farm labour supply; panel data model; within-between model (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:69:y:2023:i:10:id:233-2023-agricecon

DOI: 10.17221/233/2023-AGRICECON

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