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Relative Growth of Subsidiary Farming in Post-Soviet Economies: A Labor Supply Story

By Lyubov A. Kurkalova and Helen H. Jensen


An agricultural household model (AHM) is applied to analyze the changes in labor supply of post-Soviet households. Extensions of the model are presented in which wage and pension arrears are modeled as income uncertainty. Considering two models, one for wage earning households and another for pensioners, we find that wage and pension uncertainties increase subsidiary farming hours and so does a mean-preserving spread in the distribution of pensions. A decline in the probability of receiving wages not only increases subsidiary farming hours but also reduces wage work hours

Topics: income uncertainty, wage arrears, agricultural household model, labor supply, economies in transition, subsidiary farming, Agricultural and Resource Economics, Agricultural Economics, Growth and Development, Soviet and Post-Soviet Studies
Publisher: Iowa State University Digital Repository
Year: 2000
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