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

  • Oscar Vergara (a1), Keith H. Coble (a1), George F. Patrick (a2), Thomas O. Knight (a3) and Alan E. Baquet (a4)...

Abstract

We study the relationship between the off-farm labor decision and the limited-resource farmers' and spouses' off-farm wages, 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 seek 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.

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