Fertilizer Use, Risk, and Off-Farm Labor Markets in the Semi-Arid Tropics of India

A two-period model is developed in which a risk-averse farmer uses off-farm labor to smooth consumption, leading to greater use of fertilizer. Fertilizer demand is shown to increase with the depth of the off-farm labor market. Controlling for exogenous weather risk, farmers use more fertilizer the lower the unemployment rate and the higher the share of nonagricultural work in total off-farm labor. The results suggest that off-farm labor markets and own-farm production may be complementary in risky production environments, so that policies which promote the depth of the off-farm labor market in low-income areas may also bolster farm productivity.     

Parametric and Semiparametric Modeling of the Off-Farm Labor Supply of Agrarian Households in Transition Bulgaria

The reaction of labor markets to economic reforms is an important indicator of the progress of transition. Because of diminished government support and the breakup of state and collective enterprises, labor market adjustments in the transition economies have been particularly severe in the agricultural sector. This article evaluates the off-farm labor market for a sample of agrarian households in transition Bulgaria. We give particular attention to the distributional assumptions that underlie standard approaches to the evaluation of labor supply. A variety of specification tests are considered and support for standard maximum likelihood estimates which rely on normality as a maintained hypothesis is mixed. Alternative semiparametric (distribution-free) estimators are also considered. The empirical results indicate that, five years after the initiation of the transition, off-farm labor supply patterns for Bulgarian agricultural households are similar to what is commonly observed in developed market economies. Labor supply is positively affected by factors such as education and work experience which are hypothesized to increase off-farm wages. Social benefit programs providing monetary or in-kind support payments are shown to significantly decrease off-farm work.     

The Theory of the Farm Household: An Application to Saskatchewan

A theoretical model is presented which integrates the consumption and production components of the rural household. A theoretically determined system of expenditure equations, derived factor demand equations and an off-farm labor supply equation are estimated using primary data for Saskatchewan farm households. From the empirical results we conclude that if the wage rate can be observed or estimated, the farm household's behavior can be explained empirically in a manner consistent with received theory. Summary and Conclusions A theoretical model integrating the consumption and production sides of the farm household or enterprise is estimated empirically using primary data for Saskatchewan farm households. The farm household was assumed to maximize its utility function subject to farm production and cash flow constraints. The empirical results indicate that the theoretical model can be estimated successfully even when data are sparse. While the coefficients for the expenditure, derived demand, and off-farm labor supply equations are consistent with coefficients from similar equations estimated separately by others, the theoretically more precise integrated approach specifies the simultaneous effect of the variables across equations. From the empirical results and the theoretical considerations it is obvious that the wage rate is a key explanatory variable in the model. The wage rate links the three components of the model–final expenditures, the derived input demands and off-farm labor hours. The wage rate is one determinant of the allocation of the operator's time (although other factors such as the nature of the operation and opportunities to work off-farm dominated in this study), and both the wage rate and the allocation of the time determine the eventual income available to the rural household. In essence, then, the problem of explaining farm household behavior when the household's business enterprise function cannot be separated from its consumption activity is similar to that of traditional models based on the theory of the firm and models of consumer behavior. The only difference is that the wage rate is observable in the traditional models but needs to be estimated as a shadow price in models which seek to explain rural household behavior. As a result, research in this area must start with an explanation of the allocation of (at least) the operator's labor and a measure of the shadow wage rate. If the entire household's allocation of time between on-farm and off-farm labor and leisure is determined, it is possible to treat its consumption and production activities separately. Further research is required to extend the model to explain household labor supply to both the farm and off-farm labor markets.     

Off-farm Labour Supply with Productivity Increases,Peak Period Production and Farm Structure Impacts

The study of of-farm employment of farm family members in the context of a neoclassical time allocation model of labor supply is used to attempt to explain the amount and type of off-farm employment currently prevalent on the Canadian Prairies. The effect of labor saving technical change together with a production process characterized by periods of peak activity affect the priority that may be assigned to off-farm work These factors require explicit consideration in the theoretical framework for the study of off-farm employment. The refinements occasioned by expanding the paradigm in this manner have implications for the role of rural development policy in the support of the agricultural sector     

Nonpecuniary Benefits to Farming: Implications for Supply Response to Decoupled Payments

We develop a household model wherein farmers allocate labor to maximize utility from leisure, consumption, and nonpecuniary benefits from farming. The model shows that farmers with decreasing marginal utility of income respond to higher decoupled payments by decreasing off-farm labor and increasing farm labor, resulting in greater agricultural output. We then estimate the difference between farm and off-farm returns to labor using data from three nationally representative farm household surveys. The finding of a large on-farm/off-farm wage differential provides compelling evidence of substantial nonpecuniary benefits from farming.     

Off‐farm labor market decisions and agricultural shocks among rural households in Kenya

Using household level data from rural Kenya, this article explores whether and how farm households respond to unfavorable agricultural production environments, including any ex post adjustments in off‐farm labor supply in response to unexpected weather shocks. While controlling for a wide range of educational, demographic, and other locational factors, we examine how long‐term weather conditions and specific rainfall shocks influence a household's decision to engage in, and their earnings from, the off‐farm labor market. We find that rural households engage in off‐farm work as a long‐term strategy to deal with the effects of anticipated weather conditions on their farming operations. The analysis does not reveal major short‐term adjustments in off‐farm engagement as a result of specific, unexpected rainfall shocks; these households do however rely on remittance income and petty agricultural wage labor under these circumstances. Holding other factors constant, and conditional on participation, households in areas with a more productive local agriculture tend to earn more from off‐farm work especially in the informal/business sector than their counterparts in regions with a less productive agriculture. As expected, a vibrant local economy in the form of public investment increases the probability of off‐farm participation.     

Multiple job holdings among dairy farm families in New York and Ontario

Previous empirical studies of multiple job holding have tended to focus on the characteristics of those obtaining off-farm employment and the factors affecting the hours supplied to those obtaining off-farm activities. None of these studies have explicitly addressed the reasons behind the decision to seek off-farm employment. Neither have they been able to examine in-depth the important issue of how this major component of the farm sector responds to alternative policies, since most studies have used cross-sectional data for a given region. A comparison between countries would permit the analysis of how multiple job holding responds to differing government policies. The purpose of this paper is to examine the reasons for and factors affecting multiple job holdings of dairy farm families in neighboring regions of two counties, United States and Canada. The bordering regions of New York and Ontario have similar geographic conditions but significantly different farm support and social service policies. The results indicate the importance of farm income on why people work off the farm and provide evidence of multiple job holding as a flexible mechanism for coping with changes in the economic environment facing the household. For operators, the driving characteristics influencing off-farm labor participation is the farm's financial position. The supply-managed milk marketing system ensures higher and more stable returns for Ontario dairy farm labor. In contrast, it is family demographics, educational level and social support policy that appears to largely influence spousal off-farm employment decisions. Free medical care in Ontario lowers the reservation wage for household members. The effect of these farm and social support policies on the relative returns to labor in agriculture and non-farm employment explains the lower participation rate and hours supplied in off-farm work by both operators, and hours supplied in off-farm work by both operators and spouses in Ontario dairy farm household.     

Wage and employment effects of Malawi's fertilizer subsidy program

This article uses three waves of nationally representative household‐level panel data from Malawi to estimate how a large‐scale fertilizer subsidy program impacts the agricultural labor market, known as ganyu in that country. I find that when looking across the entire population of smallholders, receiving an additional 100 kg of subsidized fertilizer causes the average household to supply about three fewer days of ganyu. The fertilizer subsidy program also has a small positive effect on the probability that a household demands agricultural labor, with the results approaching statistical significance. In addition, a 10 kg increase in the average amount of subsidized fertilizer acquired per household in a community boosts the median agricultural wage rate by 1.4% in that community. The increase in wage rates translates to a US $1.40 per year increase in average household income in the years after Malawi's subsidy program was scaled up, and a US $1.86 per year increase in average household income for those who sold their labor before the subsidy program was scaled up. This finding suggests that households who sell their labor off farm may experience some small spillover benefit from the program in the form of higher agricultural wage rates.     

Off-Farm Employment and Grain Marketable Surplus in China

This paper examines the effects of off-farm employment on grain marketable surplus supply during the reform period in China. A theoretical framework demonstrates that farm households' supply behaviour depends not only on the profitability of farm production but also on alternative off-farm wage opportunities of household members. An empirical model, which assumes full income maximisation of farm households, simultaneously evaluates the effects of on-farm and off-farm income on their grain supply behaviour. Particular attention is paid to the effect of off-farm income through a comparison of conditional and unconditional grain marketable surplus supply elasticities. Results show that off-farm income had a strong negative effect on grain marketable surplus from farm households following liberalisation of factor markets in China and that this could lead to a loss of marketable surplus supply.     

THE ESTIMATION OF OFF-FARM LABOUR SUPPLY FUNCTIONS IN SASKATCHEWAN

In this paper, a farm-household utility maximising model which incorporates the time of both the farm operator and his wife is developed. The model is then used to estimate the off-farm labour supply of the operator and his wife, and develop policy recommendations concerning further increases in off-farm labour participation by farmers and their wives. A Heckman procedure is employed to test for sample selectivity bias. The results suggest that the supply of off-farm labour is inelastic for men but quite responsive to the estimated shadow wage for women.     

Is off-farm income reforming the farm? Evidence from Mexico

Does access to off-farm income complement or compete with agricultural production? This article explores the effect of off-farm income on agricultural production activities, using data from the 2003 Mexico National Rural Household Survey. We first discuss the theoretical conditions under which access to off-farm income may influence production in an agricultural household model. Instrumental-variable (IV) estimation methods are then used to test whether agricultural production activities, technologies, and input use differ between households with and without access to off-farm income. We find that off-farm income has a negative effect on agricultural output and the use of family labor on the farm, but a positive impact on the demand for purchased inputs. There is also a slight efficiency gain in households with access to off-farm income. Findings offer insights into how household production evolves as rural households increasingly engage in off-farm income activities.     

迁移成本、工资上升与刘易斯转折点——一个对“刘易斯转折点”分析框架的再探讨

本文从引起劳动供给条件变化的迁移成本角度对刘易斯转折点与工资上涨的关系进行探讨。分析认为,具有刘易斯转折点意义的工资上升必须同时满足两个条件:(1)必须是劳动力市场供求作用的结果,任何非劳动力供求因素变化本身导致的工资上涨都不代表转折点的到来;(2)必须是劳动力转移的结果,任何与劳动力转移无关的因素导致的工资上涨都不能作为判断转折点出现的标志。由迁移成本上升导致的补偿工资上升与具有刘易斯转折点意义的工资上升并不具有同样的性质。因此,在进行工资上涨与中国的刘易斯转折点是否到来的分析时,需要将这些引起迁移成本变化而与劳动力转移无关的因素加以分离,否则得出的结论很可能是有偏的。     

Moving off the farm and intensifying agricultural production in Shandong: a case study of rural labor market linkages in China

This study examines linkages between off-farm labor markets and the labor allocated by farmers to on-farm production of fruit crops. Using a stratified random sample of rural households in Shandong Province, we find that young and educated members of the labor force tend to work more frequently in the off-farm labor market, and that off-farm employment reduces the likelihood and intensity of fruit production. Fruit production is associated with lower levels of off-farm employment. Households and individuals who are less likely (or able) to find off-farm employment can benefit from shifting into fruit production. Although off-farm employment is an important avenue out of poverty, fruit production provides ways for the less educated and older households to raise their income.     

Efficiency Wages, Deferred Payments, and Direct Incentives in Agriculture

Empirical evidence from agricultural labor markets is consistent with efficiency–wage theory and inconsistent with several alternative explanations. According to this theory, the higher wage or deferred payment (benefits) that direct–hire growers pay relative to that of farm labor contractors is an efficiency wage. Growers use this extra compensation to lower their monitoring expenses and reduce shirking by workers.     

非农就业对家庭营林劳动力投工女性化的影响研究

根据劳动力转移新经济学理论和家庭内部劳动力分工理论,基于2018年浙江省14个县(市)681户营林调查户样本数据,运用Tobit模型分析了非农就业对营林劳动力女性化的影响。结果表明:非农就业对女性劳动力单位面积营林投工量和女性营林投工比例具有显著正向影响;非农就业对不同林种营林投入女性化有明显差异,对经济林农户家庭营林投工女性化有显著正向影响,而对用材林农户家庭营林投工女性化作用不明显。提出完善农村劳动力社会保障制度;加强农村女性劳动力营林生产技能培训;发挥女性劳动力的营林生产优势等建议。     

中国农村留守妇女的劳动供给模式及其家庭福利效应

男出女守的家庭分工改变了中国留守妇女的劳动供给模式,留守妇女保留工资较低、劳动参与率较高以及工资性工作时间较长,表明其劳动供给更接近合作博弈模型所描述的女性劳动力供给行为。留守妇女的家庭分工和劳动供给模式有利于家庭短期经济状况的改善,但同时也使得女性的家庭事务、工资性工作和农业劳动负担加重,不利于家庭的长期利益和不同家庭成员的长期福利。留守妇女的多重角色冲突导致原有的家庭利益平衡机制和稳定状态受到冲击,并且由于目前中国农村仍然缺乏有效的市场化和社会化途径将家庭短期经济收入转化为长期利益,因而短期内无法有效缓解家庭冲突和矛盾。     

Conservation Payments, Liquidity Constraints, and Off-Farm Labor: Impact of the Grain-for-Green Program on Rural Households in China

This study evaluates the labor response of rural households participating in the Grain-for-Green program in China, the largest payments for ecosystem services program in the developing world. Using a panel data set that we designed and implemented, we find that the participating households are increasingly shifting their labor endowment from on-farm work to the off-farm labor market. However, the effects vary depending on the initial level of human and physical capital. The results support the view that one reason why the participants are more likely to find off-farm employment is because the program is relaxing households' liquidity constraints.     

Shadow wages, allocative inefficiency, and labor supply in smallholder agriculture

This article introduces a method for estimating structural labor supply models in the presence of unobservable wages and deviations of households' marginal revenue product of self‐employed labor from their shadow wage. This method is therefore robust to a wide range of assumptions about labor allocation decisions in the presence of uncertainty, market frictions, locational preferences, etc. We illustrate the method using data from rice producers in Côte d'Ivoire. These data, like previous studies, reveal significant systematic differences between shadow wages and the marginal revenue product of family farm labor. We demonstrate how one can exploit systematic deviations, in the present case related to household characteristics such as the land/labor endowment ratio, to control for both unobservable wages and prospective allocative inefficiency in labor allocation in structural household labor supply estimation.     

LABOUR SUPPLY AND OFF-FARM WORK BY FARMERS: THEORY AND ESTIMATION

Off-farm employment has become increasingly important as an aspect of resource adjustment and a source of income in Australian agriculture. However, it is surprising that there is a paucity of work on this topic reported in the agricultural economics literature. Therefore, we have drawn upon recent developments in labour economics in order to investigate off-farm employment in Australia. A conceptual model of the allocation of a farmer's labour between farm and off-farm work is developed and applied to cross-sectional data from the Australian Agricultural and Grazing Industries Survey. A Tobit maximum likelihood procedure is utilised to test the influences of the life cycle, level of human capital, wealth, non-wage income and farm income on the off-farm labour supply of farmers.     

Marketing reforms,market development and agricultural production in China

Chinese agricultural reforms have consisted of two transitional stages; initially decollectivization in the late 1970s followed by market liberalization in the mid 1980s. While much research has been conducted on the initial stage of increasing the incentives for farmers in collective cultivation, little quantitative evidence exists on how marketing reforms and the development of rural markets has affected agricultural production decisions. Using more accurate and disaggregated measures of the reform and market development components of liberalization than previous research, this study examined the effects of these liberalization policies on the agricultural production decisions in Shaanxi province. Procurement quota levels were found to be positively associated with the area planted to grain crops. Thus, quotas represent an effective way of increasing grain production and thereby also a means of achieving food self sufficiency which remains an important policy objective for the Chinese government. The involvement of state grain stations in free market grain trade and the expansion of rural markets has increased the area planted to the two potential cash crops, soybeans and wheat, and reduced the sown area of the Subsistence crop, corn reflecting the reduced need to plant corn as a self insurance mechanism for smoothing consumption. An increase in procurement quotas increases fertilizer use on grain crops, due to the policy of linking quotas to access to below-market priced fertilizer, but decreases the use of labor, which shifts to other more profitable enterprises. Market development has increased these off-farm employment opportunities and the earnings associated with them, thereby promoting the shift of labor out of crop production and increased the use of fertilizer which has also become more available.