Simultaneous estimation of work choices and the level of farm activity using panel data |
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Authors: | Ahituv Avner; Kimhi Ayal |
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Institution: | University of Haifa, Haifa, Israel |
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Abstract: | We analyse the simultaneous determination and evolution overtime of work choices and the level of farm activity, using apanel of Israeli farm households. We estimate jointly a multinomialchoice model of work activity and an endogenous switching regressionof farm size, accounting for unobserved heterogeneity and correctingfor simultaneity bias. Our results imply that some family farmstend to expand over time and specialise in farming, whereasother farm households downsize their farming operation and increasetheir engagement in the off-farm labour market. Therefore, thesize distribution of farms is converging towards a bimodal distribution. |
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Keywords: | farm size off-farm work endogeneity unobserved heterogeneity panel |
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