Calculating shadow wages for family labour in agriculture: An analysis for Spanish citrus fruit farms

Andres Picazo-Tadeo and Ernest Reig-Martínez ()

Cahiers d'Economie et Sociologie Rurales, 2005, vol. 75, 5-21

Abstract: This paper deals with the calculation of shadow wages for family labour in agriculture. Using the existence of a duality between input distance and cost functions, we use the former to derive individual labour shadow prices for a sample of Spanish citrus fruit producers. Our results show that the average shadow price representing the opportunity cost of family labour employed onfarm, is lower than the average market wage rate paid for hired labour. We relate this finding to a strategy of outsourcing of many growing tasks that is currently pursued by farmers to overcome the problems posed by a suboptimal farm size.

Keywords: shadow prices; duality; distance functions; on-farm labour opportunity cost; outsourcing (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (4)

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Journal Article: Calculating shadow wages for family labour in agriculture: An analysis for Spanish citrus fruit farms (2005)
Working Paper: Calculating shadow wages for family labour in agriculture: An analysis for Spanish citrus fruit farms (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:rae:jouces:v:75:y:2005:p:5-21

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