The Off‐Farm Labor Supply of Farmers

Daniel A. Sumner

American Journal of Agricultural Economics · 1982 · 197 citations · 5 references

Concepts

TL;DR

Off‑farm wages depend on farmer human capital, local labor markets, and are sensitive to economic incentives. The study develops theoretical and empirical models to examine off‑farm wages, labor force participation, and hours of work among farmers. The authors estimate econometric models using data from a 1971 survey of Illinois farmers. A 10% rise in off‑farm wages leads to an 11% increase in off‑farm work hours, while seasonality, risk, and life‑cycle factors also influence off‑farm work.

Abstract

Abstract Theoretical and empirical models are developed to examine the off‐farm wages, labor force participation, and hours of work of farmers. Econometric estimates use data from a 1971 survey of Illinois farmers. The off‐farm wage depends on farmer human capital and the local labor market. The major result confirms the. sensitivity of off‐farm work to economic incentives. A 10% increase in the off‐farm wage entails an 11% increase in hours of off‐farm work holding farm characteristics constant. Results also indicate effects of seasonality, risk, and life cycle factors on off‐farm work.

References

5