Local economic effects on off-farm labor hours and wages of farm operators and spouses
Abstract
The purpose of the present study was to investigate the effects of local economic structure on the off-farm labor supply and wages of farm operators and spouses. Off-farm labor allocation has been explained by individual, family, and farm characteristics, and by location. Location usually has been defined as the state or county of residence. Location effects have been modelled by dummy variables or ad hoc specifications of a few climatic or economic characteristics. The geographical area most relevant to off-farm labor supply by farm residents, however, is the local labor market area, which is neither as limiting as the county of residence nor as encompassing as the state of residence. The present study examines the effects of personal, family, farm, and local economic characteristics on the off-farm labor hours supplied and wages received by farm operators and their spouses in a sample of Indiana farm families, where the local economy is defined as the local labor market area. Off-farm labor supply by farm operators was not sensitive to local economic structure, while off-farm labor supply of farm spouses was strongly affected by local economic structure. The results of the empirical models are discussed in relation to alternative specifications and previous results, and with reference to their implications for economic policy makers. Suggestions for future research are offered.
Degree
Ph.D.
Advisors
McNamara, Purdue University.
Subject Area
Agricultural economics|Labor economics|Families & family life|Personal relationships|Sociology
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