Off-farm labour decision of Canadian farm operators: Urbanization effects and rural labour market linkages

Understanding the factors affecting off-farm labour decisions of census-farm operators has significant implications for rural development and farm income support policy. We examine the off-farm labour decisions of Canadian farm operators using micro-level data from the 2001 Census of Agriculture combined with community level data from the 2001 Census of Population. While confirming some of the findings of previous research with respect to the effects of human capital and farm characteristics on off-farm work participation, this study shows the differential impact of those variables for operators of smaller and larger holdings. Family, community and regional characteristics appear more relevant in determining the joint decision to work off-farm and operate a smaller holding, compared to the decision to work off-farm and operate a larger farm. Results suggest that, once other factors are accounted for, proximity to urban centres does not have a positive effect on the joint decisions to participate in off-farm work and to operate a holding. This joint decision, in fact, is more related to the dynamics of the local labour market. A major implication of these findings is that while urban centers might represent an engine of growth for overall rural income through employment opportunities for the non-farm workforce, the non-farm income of farm operators is more likely to be affected by policy initiatives that address directly the dynamics of labour markets in the community where the operator lives.     

Gender relations and the family farm in Western Europe

The paper focuses upon the impact of changing relations between farmers and spouses in the context of the restructuring of the rural economy and increasing female participation in labour markets. It is based upon a study of the connections between the succession process in agriculture and family relationships [Blanc, M. and Perrier-Cornet, P. (1989) Renouvellement des forces de travail et formes de production familiales en agriculture (les installations d'agriculteurs au cours de la decennie soixante-dix). Montpellier, INRA, Departement d'Economie et de Sociologie Rurales, Montpellier]. It argues that for farmer's wives, off-farm work, participation in other farm-based enterprises and occupational status result from a negotiation of power relations within the farm operating couple. Such changes are bringing about a distinct form of pluriactivity among farm families, with an emerging trend towards husbands being occupied full-time on-farm and wives off-farm.The paper deals with the future of family farming in connection with these changes. The role played by the ideology of family farming in sustaining these emerging forms of production is examined. The individuation of aspirations, especially for women, is considered an important factor in terms of labour market involvement. However, it is argued that the resolution of the impact of such changes on the domestic sphere and the farm is dependent upon a process of negotiation between the farmer and spouse.     

Modelling locational access to markets for pluriactivity: a study in the Grampian region of Scotland

This paper investigates the role of location in determining the presence of on- and off-farm pluriactivity. Gravity models are developed to define degrees of access to markets from farm locations, and farm household survey data from the Grampian Region of Scotland are used to test the ability of the models to explain the observed location of pluriactivity. Proximity to markets is shown to be an important factor for both tourist and non-tourist on-farm diversification, and is reflected in the location of farms with on-farm non-agricultural activities. However, there is no evidence of a relationship between access to labour market opportunities and the presence of off-farm employment at the sub-regional scale. Personal preferences concerning work location and household responsibilities may be more important in determining the presence of off-farm work than proximity to labour market opportunities. Possible refinements to the technique and policy implications are discussed.     

Farm Wives' Labor Force Participation and Earnings

Abstract The decisions of farm wives to work off the farm and the earnings they make in that off-farm employment should be considered simultaneously. Previous studies of wives' off-farm earnings have included only employed wives in their analyses of the factors affecting earnings, which results in biased estimates. This study tests, via Tobit analysis, a model which includes all farm wives and examines the effects of wives' human capital, farm and family constraints, and labor market characteristics on both their off-farm employment decisions and their earnings. Wives' off-farm earnings are found to be related to wives' education, labor market experience, presence of children, other family income, farm size, and debt/income ratio. Changes in these factors have a greater influence on the labor market participation decisions of farm wives than on the variation in their earnings, once employed.     

The Effects of Metropolitan Residence on the Off-Farm Earnings of Farm Families in the United States1

Abstract Previous research on the effects of urbanization on farming and farm families has focused on the consequences of urban expansion on farming practice rather than on the well-being of farm families. Proximity to urban areas has been found to alter the way farm families utilize the nonfarm labor market. In this study, the off-farm earnings of husbands and wives in farm families are compared across metropolitan (metro) and nonmetropolitan (nonmetro) areas using data from the March supplement to the 1989 Current Population Survey. Censored regression models (tobit) and decomposition are used to demonstrate the effects of nonfarm labor market differences on off-farm labor force participation and earnings. The analysis reveals that farm family members, as expected, have significantly higher rates of participation and earnings in metropolitan areas. But this analysis also reveals that increases in off-farm participation are likely to have a larger effect on total off-farm earnings in nonmetropolitan areas than returns to those already working off-farm. The potential for increases in off-farm earnings will be underestimated in nonmetro areas when changes in participation in the off-farm labor market are not taken into account.     

Taxation and female participation in the labour market

A well established result in empirical economics is that male labour market participation does not respond much to changes in taxation but female participation does. This paper reviews a range of contributions relating to such decisions in the light of two further empirical studies on labour market decisions — one in low income households and the other in higher income households. One finding is that an important factor in decisions relating to female participation appears to be the continuing strength of the traditional division of labour by gender in households. The tax treatment of childcare also emerges as an issue both on first principles and as an influence on the labour market decisions of women (and particularly for women on low incomes).     

Program participation in a targeted land distribution program and household outcomes: evidence from Vietnam

We estimate whether a land reform program led to higher incomes for ethnic minority households. In 2002, in the Central Highlands of Vietnam, Program 132 directed the transfer of farm land to ethnic minority households that had less than one hectare of land. Using the 2002 Vietnam Household Living Standards Survey as a baseline, in 2008 we resurveyed over one-thousand households to provide a retrospective evaluation of the impact of their participation in Program 132. Contrary to official reports, our findings show that there was considerable deviation from the planned program parameters: many eligible households did not receive land, while ineligible households often did. We estimate that beneficiaries of the program in the province of Kon Tum experienced increases of household income largely in line with what one would expect from a small plot of poor farm land. Outside Kon Tum, where participation rates were substantially lower, the story is more mixed, and household incomes did not improve with program participation. Overall, our results underscore the limitations of simple transfers of land as a mechanism for improving the living standards of ethnic minorities. Our results also show the significant gap that can exist between program design and decentralized implementation. We discuss the potential implications for program evaluation.     

The politics of pluriactivity in Britain

This paper examines the political context to policies promoting farm diversification in Britain, in an attempt to understand both the fundamental contradictions which lie within these policies and the particular emphasis placed upon on-farm diversification in Britain. The paper begins therefore with an analysis of the politics of British agriculture in the 1980s, and then focuses in detail on policies which promote farm diversification. Finally, the paper compares these policies with evidence of trends and characteristics of pluriactivity in Britain, and suggests three major contradictions between government policies and observed farm household behaviour. A majority of farm households see little need to diversify and have even less inclination to do so. Any redeployment of on-farm resources is most likely to occur on the sale or transfer of the farm, and is unlikely to offer a source of alternative income for poor farmers.     

EU-Mediterranean youths in the crisis: substitution vs. income effect

The economic crisis that erupted in 2008 has had particularly adverse effects on the youth labour market outcomes in the European Union Mediterranean economies. So far little evidence is available on the reaction of the young to the adverse conditions their household members faced due to the crisis. Youths could have decided to prolong or stay in education instead of participating on the labour market (substitution effect) or they could have decided to increase their participation (income effect). By using the EU Labour Force Survey data, we explore the probability of young adults changing their labour market status from (i) inactivity to employment, (ii) inactivity to unemployment, (iii) employment to education, and (iv) unemployment to education in response to labour market outcome changes in their households: (i) both parents losing the job; (ii) one of the parents losing the job, (iii) both parents becoming inactive, (iv) one of the parents becoming inactive, and (v) both parents remaining unemployed. Estimated probit models include seven EU Mediterranean countries during the 2006–2015 period. Results support both income and substitution effect, without clear identification of the dominance of one effect over the other.     

Farm pluriactivity and rural policy: Some evidence from Wales1

Drawing on data from 427 interviews in Wales, U.K., this paper examines the ability of internal and external variables to explain the phenomenon of pluriactivity in farm households. It is the household as a unit, and the process of maintaining its viability, that forms the focus of the study, with pluriactivity being defined as the generation of income additional to that from primary agriculture, by any member of the household.The survey revealed that, whilst primary agriculture retains its position as the main income, only a minority of households did not have a supplemental source of income. Indeed, these ‘other sources’ can be financially very important. Off-farm work was the most significant type. A degree of differentiation was apparent between farmer, spouse and other family members and the type of incomegenerating activity.Internal variables (particularly physical farm size, farm type, education and ethnicity) are shown to have some statistical ability to explain the patterns of pluriactivity.Pluriactivity is of interest in the present environment of agricultural policy reform. However, there is some evidence that pluriactivity is not driven solely by financial pressure or policy measures aimed at farm diversification. The paper concludes that policy aimed at the diversification of the farm business may be less than successful as many internal and external factors appear to work to restrict such activities. Most of the contemporary growth in pluriactivity has been in the form of off-farm jobs — a policy sector presently divorced from farm/agricultural policy.     

A post-crisis assessment of retirement income adequacy for Baby Boomers and Gen Xers

DETERMINING THOSE "AT RISK" OF INSUFFICIENT RETIREMENT INCOME: The analysis in this paper was designed to answer two questions: 1) What percentage of U.S. households became "at risk" of insufficient retirement income as a result of the financial market and real estate crisis in 2008 and 2009? 2) Of those who are at risk, what additional savings do they need to make each year until retirement age to make up for their losses from the crisis? The results are from the 2010 EBRI Retirement Security Projection Model by the Employee Benefit Research Institute. KEY FINDINGS: Range at risk: The percentage of households that would not have been "at risk" without the 2008-2009 crisis but that ended up "at risk" varies from a low of 3.8 percent to a high of 14.3 percent. 50-50 chance of adequacy: Looking at all Early Boomer households that would need to save an additional amount (over and above the savings already factored into the baseline model), the median percentage of additional compensation for these households desiring a 50 percent probability of retirement income adequacy would be 3.0 percent of compensation each year until retirement age to account for the financial and housing market crisis in 2008 and 2009. 90 percent chance of adequacy: Looking at all Early Boomer households that would need to save an additional amount (over and above the savings already factored into the baseline model), the median percentage of additional compensation for these households desiring a 90 percent probability of retirement income adequacy would be 4.3 percent of compensation. Range of adequacy: Looking only at Early Boomer households that would need to save an additional amount (over and above the savings already factored into the baseline model), that had account balances in defined contribution plans and IRAs as well as exposure to the real estate crisis in 2008 and 2009 shows a median percentage for of 5.6 percent for a 50 percent probability and 6.7 percent for a 90 percent probability of retirement income adequacy.     

Contrasts and Commonalities: Hispanic and Anglo Farming in Conejos County,Colorado

Abstract The San Luis Valley farming systems' project sought to identify improved technologies and better decision-making capabilities for modest-sized and limited-resource farms. Characteristics of limited-resource farms operated by Hispanic and Anglo families, which may or may not be associated with differential rates of social participation and/or institutional discrimination, were examined. To determine characteristics of client farms, data were collected and stratified on farm resources, farm operations, goal hierarchies, and operational management strategies. Hispanic and Anglo farmers differed significantly in several respects. Key among these differences were crop and livestock enterprise mixes and the importance of off-farm income to households. For many farming parameters, farm size, age of farmer, and full-time/part-time characteristics overshadowed ethnicity as a determinant of decision-making. However, an important subset of the farm population is composed of Hispanic farmers who operate below median farm acreage on a part-time basis and for whom few technological developments or assistance programs are specifically designed or delivered.     

The effect of income shocks on food insufficiency

In this paper we investigate the relationship between income shocks and food insufficiency for U.S. households. Using Survey of Income and Program Participation data on U.S. households, we test the importance of both stable and transitory income components in determining food insufficiency. In a logistic regression model, we find that both the level of income and negative income shocks affect the predicted probability of food insufficiency, while positive income shocks do not. Although we do not have a definitive measure of a household’s liquidity constraint status, our work suggests that negative shocks may matter more for households that face liquidity constraints. Understanding the role of income shocks in determining food insufficiency is especially important in light of recent policy changes. It is likely that welfare reform in the U.S. increased the volatility of income in the low-income population. Our findings here suggest that this increase in volatility may not be without consequence.     

On the Question of the Feminization of Production on Part-time Farms: Evidence from Norway1

Abstract The argument that production on part-time farms has been feminized is evaluated using longitudinal and indepth interview data sets from communities throughout Norway. Time-series data suggest that traditional part-time farms are not being reproduced in Norway. Rather, there is a shift toward modern forms of part-time farming; in its most common form, women juggle off-farm, farm, and household work while men farm or combine farming with an off-farm job. As some women shift or reduce their labor input to the farm, others opt to become independent female farmers. What has emerged is an increasing number of two-career households with male and, less frequently, female farmers whose working spouses contribute some labor to die farm. In all cases, women continue to do most, if not all, of the domestic housework.     

Income distributions,labour market sectors and the Goldschmidt hypothesis: the nonmetropolitan United States in 1970 and 1980

Local social structures are not simply their national counterparts writ small. There are autonomous, locality-specific influences which have a significant bearing on variations in socio-economic conditions. To show this. this paper concentrates on two measures of income distribution — family/household income inequality and poverty rates. Drawing on data from a one-in-six systematic sample of nonmetropolitan U.S. counties for 1970 and 1980, variations in these conditions are evaluated in the context of labour market segmentation and Goldschmidt's ideas on the socio-economic consequences of large-scale farms. The direct effects of these causal forces are shown to be influenced by the employment structures of local labour markets. The most important determinants of income distribution differences within labour market types are shown to be monopoly sector employment, competitive sector employment, large farm holdings, nonwhite population compositions and location within the southern United States.     

The impact of early life-course transitions on equality at work and home

This paper investigates two aspects of the paid employment relationship between female and male partners aged 23. It is argued that in order to understand women's position in the home and the labour market it is necessary to consider employment relationships in the context of the household. The impact of children on women's labour force participation is already well known and in this paper we show that marriage also has an independent effect on hours worked. The second aspect of the paper concerns the relative financial contribution of each partner to the family income from their labour market earnings. It is recognised that power and equality within the home are to some extent derived from the relative contribution of partners to the family income. It is shown that women are economically dependent on men even in the early stages of their partnership before children and that this dependence is greater among women with children.     

The impact of privatization and change of social security systems upon living conditions of east German households

After the collapse of the communist regime East Germany became the prime example of a ‘Big Bang’ strategy of transformation. Rapid marketization and privatization brought about a disastrous economic downturn. But immense transfer payments from West Germany and the import of a well‐developed system of social security institutions accompanied the transformation, minimizing social costs. This article summarizes the main developments and analyzes their impact on the living conditions of East German households. The indicators presented cover labour force participation, business activities and economic inactivity in the household context; relative income position, poverty, income inequality and the self‐assessment of income changes; consumption and livelihood. The article reveals both the different experiences of gains and losses within East German society and the (in some respects) advantageous position of East German households compared with households in Hungary, Poland, and the Czech and Slovak Republics.     

The impact of labour income risk on household saving decisions in Turkey

This paper analyses the Household Budget Surveys prepared by the Turkish Statistical Institute to reveal the empirical importance of precautionary saving in Turkey. The most difficult aspect of the empirical analysis is the approximation of labour income risk as a proxy variable for future labour income uncertainty. Individual disposable income is interacted alternately with the probability of being unemployed and with the probability of job loss in the next period to generate the labour income risk variables. The econometric results support the precautionary saving hypothesis and labour income risk emerges as one of the main determinants of household saving decisions. Moreover, households implement alternative strategies to smooth out their income streams such as holding a second job and increasing the number of income earners in the family. However, it is evident that they are still vulnerable against labour income risk, which underlines the need for an effective and efficient social security system.