Since 2014
Once part-timer always part-timer? Causes for persistence in off farm work state of farmers
Bio-based and Applied Economics
View Archive Info| Field | Value | |
| Title |
Once part-timer always part-timer? Causes for persistence in off farm work state of farmers
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| Creator |
Corsi, Alessandro; University of Torino
Salvioni, Cristina; University of Chieti-Pescara |
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| Subject |
off-farm work; farm household; state dependence; panel data; CAP reform
J220; J430; Q120 |
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| Description |
Off-farm labour participation is an important way in which farm households adapt their labour resources to farm labour needs, and is often viewed as an income integration and an insurance against risk. Nevertheless, it has also been questioned as a step for exiting agriculture. It is therefore important to assess whether or not it is a permanent status and which are its determinants. Most papers on this issue are based on cross-sectional analyses and thus disregard the problem of persistence in the state. Using a 5-wave panel of Italian family farms we estimate different dynamic nonlinear panel data models of the determinants of off-farm labour participation. We allow for two sources of persistence: unobserved heterogeneity and state dependence, and in addition we control for the initial conditions problem. We find a strong persistence in the state and our findings show that, when taking all these features into account, the present work state is almost totally explained by the previous state and by idiosyncratic characteristics. The variables concerning the farm and the farmer’s characteristics, typically found to be relevant in cross-sectional analyses, are not significant in the dynamic setting. The reasons for the inconsistency between our results and those of cross-sectional studies are discussed, and an interpretation of how the determinants influence the off-farm labour participation is presented. The distinction between true state dependence and individual heterogeneity has important policy implications that are discussed.
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| Publisher |
Bio-based and Applied Economics
Bio-based and Applied Economics |
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| Contributor |
—
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| Date |
2017-10-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://www.fupress.net/index.php/bae/article/view/19162
http://www.fupress.net/index.php/bae/article/download/19162/20123 10.13128/BAE-19162 |
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| Source |
Bio-based and Applied Economics; Vol 6, No 2 (2017); 159-182
Bio-based and Applied Economics; Vol 6, No 2 (2017); 159-182 2280-6172 2280-6180 |
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| Language |
eng
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| Relation |
10.13128/BAE-19162
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| Rights |
The authors retain all rights to the original work without any restrictions.License for Published ContentsYou are free to copy, distribute and transmit the work, and to adapt the work. You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work).Licence scheme | Legal codeLicense for MetadataThis Journal published articles metadata are dedicated to the public domain by waiving all publisher's rights to the work worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.You can copy, modify, distribute and perform the work, even for commercial purposes, all without asking permission.Licence scheme | Legal code
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