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Farm Income Variability and the Supply of Off-Farm Labor by Limited-Resource Farmers

By Oscar Vergara, Keith H. Coble, George F. Patrick, Thomas O. Knight and Alan E. Baquet

Abstract

We study the relationship between the off-farm labor decision and the limited-resource farmers’ and spouses’ off-farm experience, education, and sources of income. We found that farmers’ and spouses’ off-farm experience and wages are significant factors in explaining the off-farm labor supply decision. Contrary to expectations, farm income variability is not significant in the farmers’ and spouses’ decision to see off-farm work. The off-farm labor supply of farmers and their spouses is negatively correlated with income transfers from the government. It was also found that the spouse is a residual supplier of on-farm and off-farm labor.farm income variability, limited-resource farmer, off-farm work, Tobit regression, C34, D19, D81, J15, Q18,

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