Farm and Off-Farm Work Decisions: The Role of Human Capital

Huffman, Wallace E.

doi:10.2307/1924268

Cited by 260 publications

(176 citation statements)

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“…We compare differences in household decisions for the two alternative settings with and without constraints on off-farm labor employment opportunities. Our analysis extends the incomeleisure model of Benjamin (1992), and complements the theoretical models by Strauss (1986), Lopez (1996), Huffman (1980Huffman ( , 1991, and Taylor and Adelman (2003).…”

Section: Discussionsupporting

confidence: 58%

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Labor supply, income, and welfare of the farm household

2012

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Considering family labor and hired labor as heterogeneous inputs, we present a theoretical framework in which the optimal decisions of a farm household on on-farm family and hired labor, off-farm labor supply, and leisure are determined uniquely and endogenously. Focusing on two alternative settings with and without off-farm employment constraints, we show that imperfect substitutability between family labor and hired labor is not critical to the separation of household production and consumption. The validity of the separation proposition is shown to depend crucially on whether or not the availability of off-farm job opportunities is limited. We further examine how changes in external economic conditions and government policies affect the time allocation decisions of the household, as well as the composition of household income (i.e., on-farm income and off-farm labor earnings).

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Section: Discussionsupporting

confidence: 58%

“…See, e.g., Strauss (1986) and Huffman (1980Huffman ( , 1991 participation in the off-farm labor markets and their off-farm earnings have been increasing (Mishra and Sandretto, 2002).…”

Section: The Analytical Frameworkmentioning

confidence: 99%

Labor supply, income, and welfare of the farm household

2012

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“…Additionally, the peak of the inverted "U" was at 31 years (when as a dependent variable used the farmer's and/or partner's off-farm combined work, and 34 years when as a dependent variable used only the farmer's off-farm work hours). They underlined that the farmers are more eager to increase their work effort in the earlier years (in their middle years) in order to expand their incomes, which was supported by the studies of Huffman (1980). Lien et al (2010) also estimated that the farmers, who are single, are not so engaged in the off-farm work as the farmers with partners.…”

Section: Social and Demographic Characteristicsmentioning

confidence: 93%

“…For example, improving the education level of farmers is expected to raise the farm outputs and non-farm wage rates which was analysed by Huffman (1980), Taylor and Yunez-Naude (2000) and others. Also the gender of household head is considered to be a relevant factor that affects the farm operating efficiency (Zhao 1999;Yunez-Naude and Taylor 2001;Brosig et al 2007).…”

Section: Reviewmentioning

confidence: 99%

What may determine off-farm income? A review

Pastusiak¹,

Jasiniak²,

Soliwoda³

et al. 2017

AGR ECON-CZECH

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Pastusiak R., Jasiniak M., Soliwoda M., Stawska J. (2017): What may determine off -farm income? A review. Agric. Econ. -Czech, 63: 380-391. Abstract:Farming is treated as one of the riskiest businesses. Political decisions, especially these related to the agricultural sector, may be treated as of a great importance. As a consequence, farm owners seek to diversify their sources of income and run other strategies aiming to stabilize their earnings i.e. by off -farm activities. Th e paper selected key groups of the determinants of the off -farm income with the aim to evaluate the current state and to propose further steps of the detailed analysis. Th e authors identifi ed the mechanisms how the particular instruments infl uence farmers' decisions on generating the off -farm income. It may be concluded that the signifi cance of direct payments is still very high. Subsidies generally discourage farmers from the non-agriculture employment. Th e infl uence of socio-demographic characteristics is signifi cant, however, the strength of this impact is determined by the additional factors like the situation in the labour market. In case of environmental determinants, it should be noted that there is a limited group of factors that may be out of control by the farm operators. Th e value added of the article is an attempt to identify the mechanisms how the particular instruments may infl uence farmers' decisions on generating the off -farm income. Th e article fi nishes with the authors' recommendations for further empirical studies.

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“…Research carried out since the early 1970´ has shown that farmer education is an important variable explaining input use (Huffman, 1977), firm efficiency (Fane, 1975), off-farm labor allocation (Huffman, 1980) and other aspects. Farmer education is seen as particularly critical in low-income countries where a large portion of total population is employed in agriculture, educational levels are low, and new technologies place considerable demands on production management.…”

Section: Introductionmentioning

confidence: 99%

Returns to Managerial Ability: Dairy Farms in Argentina

Gallacher

2011

SSRN Journal

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Farm and Off-Farm Work Decisions: The Role of Human Capital

Cited by 260 publications

References 1 publication

Labor supply, income, and welfare of the farm household

Labor supply, income, and welfare of the farm household

What may determine off-farm income? A review

Returns to Managerial Ability: Dairy Farms in Argentina

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