Farm Income Variability and the Supply of Off-Farm Labor by Limited-Resource Farmers

Oscar Vergara, Keith Coble, George F. Patrick, Thomas O. Knight and Alan E. Baquet

Journal of Agricultural and Applied Economics, 2004, vol. 36, issue 2, 467-479

Abstract: We study the relationship between the off-farm labor decision and the limited-resource farmers' and spouses' off-farm wages, experience, education, and sources of income. We found that farmers' and spouses' off-farm experience and wages are significant factors in explaining the off-farm labor supply decision. Contrary to expectations, farm income variability is not significant in the farmers' and spouses' decision to seek off-farm work. The off-farm labor supply of farmers and their spouses is negatively correlated with income transfers from the government. It was also found that the spouse is a residual supplier of on-farm and off-farm labor.

Date: 2004
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