Economics at your fingertips  

Risk and farm operator labour supply

Nigel Key, Michael Roberts and Erik O'Donoghue
Authors registered in the RePEc Author Service: Michael James Roberts () and Michael R. Roberts ()

Applied Economics, 2006, vol. 38, issue 5, 573-586

Abstract: This study uses a large increase in US Federal crop insurance subsidies as a natural experiment to identify the importance of risk for farm operator labour supply. Subsidy increases induced greater crop insurance coverage, which in turn reduced farmers' financial risks. Crop insurance participation data are merged with farm-level Census of Agriculture data from 1992 and 1997 to compare how individuals' off-farm labour supply changed in response to the policy-induced change in insurance coverage. The empirical approach controls for unobserved heterogeneity and accounts for the censored nature of the data. It is found that greater insurance coverage reduces the off-farm labour supply of operators who produced at least $100 000 of output, and increased the labour supply of small-farm operators who produced less than $25 000 of output.

Date: 2006
References: View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1080/00036840500369043

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2023-01-23
Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:573-586