Do They Come Back Again? The Symmetry and Reversibility of Off-Farm Employment

Christoph Weiss

European Review of Agricultural Economics, 1997, vol. 24, issue 1, 65-84

Abstract: A panel of more than 39,000 Upper Austrian farm households has been used to investigate off-farm labour market behaviour. We find the full-time/part-time decision of farmers to be determined by their previous off-farm employment status (state dependence). Whereas an increase in the market wage significantly raises the probability of switching from full-time to part-time farming, a comparable wage reduction does not influence the probability of returning to full-time farming again. We thus conclude that the assumption of full-reversibility necessarily made in empirical models based on cross-section data cannot be supported with Upper Austrian data. Copyright 1997 by Oxford University Press.

Date: 1997
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European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

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