Off-farm labor supply responses to permanent and transitory farm income

Chul-Woo Kwon, Peter Orazem and Daniel M. Otto

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: A sample of Iowa farm couples is used to evaluate whether off-farm labor supply decisions respond to permanent and transitory components of farm income. Off-farm labor supply of both spouses declines in response to increases in permanent farm income. Farm wives also reduce off-farm labor supply in response to positive transitory farm income shocks. Consequently, one mechanism farm households use to smooth their goods consumption when facing fluctuating farm income is to modify their consumption of leisure. Ability to smooth goods consumption does not imply the absence of liquidity constraints among farm households unless leisure consumption is also smoothed.

Date: 2006-01-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... 782b75588746/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Journal Article: Off‐farm labor supply responses to permanent and transitory farm income (2006)
Working Paper: OFF-FARM LABOR SUPPLY RESPONSES TO PERMANENT AND TRANSITORY FARM INCOME (2003)
Working Paper: Off-Farm Labor Supply Responses to Permanent and Transitory Farm Income (2003)
Working Paper: Off-farm labor supply responses to permanent and transitory farm income (2003)
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: https://EconPapers.repec.org/RePEc:isu:genstf:200601010800001205

Access Statistics for this paper

More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().