Effects of relative advantage on time use in farm families

An assumption of comparative advantage (CA) is that all members in efficient households specialize in market or household work. The CA for Oregon farm households was measured by differences between husbands and wives in wages and schooling for nonfarm work, and in farm decision-making responsibility and years lived on a farm for farm work. The spouse with the advantage is assumed to spend more time in that work sector and less time in household work than his (her) spouse. The hypothesis is supported for market work. For farm decision making, results are consistent with the hypothesis but not significant. Years lived on a farm is consistent for husbands, but wives who have the CA do significantly less farm work than wives of men who hold the CA. Experience may not be a good measure of CA, or perhaps farm work provides process satisfaction to farm men (and their wives) who work longer hours.She directs the Family Resource Management Graduate Program. Her research interests center on concepts and measures of management, household work, and well-being in the United States and across cultures.His current research interests include family saving and investing behavior. He received his Ph.D. from Oregon State University in 1992. This research was funded by the Oregon Agricultural Experiment Station.     

Measuring precautionary wealth using cross-sectional data: the case of farm households

This study models and investigates the presence of precautionary wealth among farm households, something few studies have attempted. Using pooled farm-level data, we find that self-employed farm households accumulate more wealth. Precautionary savings is about 8% of total household wealth. In addition, we find that age, education, occupation, and operation size are important factors influencing wealth accumulation by US farm households.     

Family labor supply,taxation and saving in an imperfect capital market

This paper combines income and expenditure with time use data to provide a unique picture of the labor supply, household production, saving and consumption decisions of two-adult households over a life cycle defined in terms of the presence and ages of children. The study also draws on data for household borrowing and lending, direct and indirect benefits and taxes to calibrate a “family” life cycle model at the core of which is the hypothesis that households face a borrowing interest rate that rises with the amount of non-collateral based borrowing. The household members jointly choose time paths of time use, consumption and saving over their life cycle in the face of this capital market imperfection. Importantly, households are shown to differ significantly in their saving behavior in a way that depends on secondary earner labor supply, with a strong positive association between saving and the income of the second earner. The results differ sharply from those of the existing literature.     

Emergency Saving and Household Hardship

Households with limited income and wealth often struggle to access the financial liquidity needed to address unexpected expenses or income drops. Emergency savings can act as form of insurance against such economic shocks and reduce the risk of hardships that influence family wellbeing. Prior research has established that threshold amounts of liquid assets can reduce the risk of economic hardship. This study used a measure of self-reported emergency saving behavior to examine whether households who reported saving for emergencies were less likely to experience subsequent economic hardships in a longitudinal sample of households in disadvantaged neighborhoods from the Annie E. Casey Foundation’s Making Connections project. Results across a range of regression models suggest that households who saved for emergencies experienced slightly less overall hardship and were less likely to report several specific hardships, such as food insecurity and having a phone disconnected, three years later. This study supports the idea that small, unrestricted savings may play a protective role for low-income households.     

The Industrial Transformation of Farm Communities: Implications for Family Structure and Socioeconomic Conditions

Abstract The industrialization of agriculture has resulted in extensive declines in the number of farms and in the number of people employed in agriculture. For many farm communities, this has resulted in rapid population declines. Other farm communities have been able to attract alternative sources of employment. This study analyzes family structure and socioeconomic conditions in 281 Great Plains counties that were economically dependent on agriculture at one time. Surprisingly, it was found that, while communities remaining agriculturally dependent had extensive population declines, they also had higher rates of employment, lower poverty rates, higher proportions of married couple households, and income levels equal to counties now economically dependent on nonfarm industries. Conditions in counties that have become service based were especially troubling.     

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.     

Family dissolution and precautionary savings: an empirical analysis

The main research question of this paper is whether or not the risk of family disruption has an impact on the consumption/saving decisions of households. Although little empirical work exists in this area, often presenting indirect evidence, the theory is divided over the effect of family risk over saving and wealth accumulation. By using data from the Italian Survey on Households Income and Wealth, we build a probabilistic model to assess the probability of marital splitting, and then we insert this probability as a distinct or interacted regressor, in a statistically consistent way, into a linear model of consumption. Furthermore, we study the differential behaviour, in terms of consumption/saving choices, of couples experiencing marital splitting over the subsequent 2?years. The main result of our analysis is that family disruption risk generates precautionary savings, reducing current consumption. In fact, according to our estimates, on average, the risk of divorce generates an amount of additional yearly precautionary savings of around 800 euros at constant prices of the year 2000, which represents 11% of overall household savings.     

Political Beliefs in an Era of Economic Decline: Farmers' Attitudes Toward State Economic Intervention,Trade, and Food Security1

Abstract The effects of the economy on political attitudes is a longstanding sociological issue that is receiving renewed attention in the face of recent U.S. economic downturns. While the impacts of the farm crisis on financial and household well-being of farm operators have been addressed by a number of studies, few have explored its political outcomes. Four perspectives that consider how economic forces translate into political beliefs are outlined, two reflecting objective economic position (class location and financial pressure) and two indicating subjective appraisals (feelings of economic uncertainty and subjective deprivation). Data from a sample of Ohio farm operators for 1987 are used to analyze how the perspectives are related to progressive beliefs about farming, the domestic nonfarm economy, and third-world food production. Indicators of objective economic position and subjective appraisals have relatively limited impact on farmers' political attitudes. Of these indicators, subjective appraisals were more closely related to attitudes. In addition, operators' stances on farm political issues also affect their views on domestic nonfarm and third-world policy agendas. Implications were found for studies of farmers' political attitudes as well as for broader sociological theory regarding the development of progressive attitudes during periods of economic decline.     

Rural Agricultural Change and Individual Out‐migration

We investigate the impact of household use of labor‐saving farm technologies on first‐time out‐migration after the household agriculture and consumption survey was conducted in 1996. Building on the labor substitution framework, we hypothesize that household use of labor‐saving technologies (e.g., tractors, farm implements, chemical fertilizers, and pesticides) increases individual out‐migration. To estimate the effects of the use of labor‐saving farm technologies on out‐migration, we use uniquely detailed panel data from the rapidly changing rural agrarian, migrant‐sending setting of Nepal. The results of our multilevel, discrete‐time, event history models suggest that net of other known factors associated with out‐migration, household use of farm technology—particularly the use of tractors—significantly increases out‐migration.     

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.     

Land Tenure Legacies,Household Life Cycles,and Livelihood Strategies in Upland China

Land tenure regimes shape how households use labor and other resources to construct livelihoods. Within a given tenure regime, shifting land‐labor relationships over the household life cycle present households with changing trade‐offs. In China, alongside growing market exchange of labor and produce, the legacies of land distribution following decollectivization—in particular, secure access to land and constraints on land transfers—create distinct patterns connecting livelihood strategies to household life cycles. Drawing on a household survey conducted in upland southwest China, we use latent class analysis to identify clusters of households with differing livelihood strategies. With multinomial logistic regression analyses, we evaluate the effects of household demographic composition, household resources, and community human ecological attributes on cluster membership. Households that had recently been established at the time of decollectivization have not divided their holdings. Their large labor and land endowments support diversifying strategies that include relatively large scale farming. Among other households, partitioning has yielded middle‐sized households with diversifying strategies and small households that specialize in on‐farm production or deactivate from agriculture. These clusters vary in labor exchange practices and agricultural input use. Rather than a cyclical pattern, this configuration reflects time‐bound relationships among national tenure institutions, local markets, and household processes.     

The Factors Influencing Saving in a Matched Savings Program: Goals,Knowledge of Payment Instruments,and Other Behavior

This paper explores the saving behavior of the group of low-income households that have participated in the Australian Saver Plus matched savings program. The paper finds that a dynamic panel model represents a good technique for modeling the savings account balances of such participants. We find that, even after controlling for the unobservable individual response to the program incentive, the saving goal and education/financial literacy variables play a positive role in encouraging saving behavior. More importantly however, we find that programs such as Saver Plus are able to modify the saving behavior of individuals to the point where their prior behavior and their inherent attitude towards saving no longer play a significant role.

Food Calorie Intake under Grain Price Uncertainty in Rural Nepal

This study evaluated the effects of grain output price uncertainty on the farm income of rural households and, consequently, how this uncertainty influenced caloric intake through changes in farm income. Using a national rural household survey data set in Nepal, augmented with output price uncertainty measures calculated from historical time-series data, we found that grain output price uncertainty (especially for rice and wheat) tends to decrease crop production income of rural households. In addition, we found that lower crop income from production decreases calorie intake of rural households. Taken together, these results suggest that output price uncertainty during the production process tends to reduce caloric intake of rural Nepalese households. The price uncertainty seemed to reduce the crop income households need to buy calorie-rich staple foods.     

Women’s Household Preparation for Retirement at Young and Mid-Adulthood: Differences by Children and Marital Status

There are increasing concerns about whether Americans are saving enough for retirement. Recent research has called for improved understanding of the relationship between family structure and economic preparation for retirement at earlier stages of the life course. Using multiple years of the Federal Reserve Board’s Survey of Consumer Finances, we examined how number of children and marital status were associated with women’s household retirement savings at young and mid-adulthood. Several household-level indicators of retirement preparation were considered: desire to save for retirement, retirement account ownership, eligibility to participate in a defined-contribution plan, participation in defined-contribution plans, and retirement account wealth. Results from regression analyses revealed variation in women’s household financial preparation for retirement at young and mid-adulthood by family context. Additional children were negatively associated with several measures of retirement preparation among single-female households but not for couple households. Overall, we found that low economic preparation for retirement is an additional economic disadvantage facing single mothers at young and mid-adulthood, with potentially long-term implications for their financial security. The results shed light on linkages between family structure and women’s economic status.     

Risk and returns of sustainable crop intensification: The case of smallholder rice and potato farmers in Uganda

The use of modern inputs such as synthetic fertilizers is often put forward as the best way to increase crop yields in an ecologically sustainable way. However, such inputs can be perceived as risky, and adoption may depend on how much extra risk a farm household can afford. This article describes the potential for fertilizer and pesticide use among Ugandan smallholder rice and potato farmers. In addition, it documents patterns observed in socioeconomic data that suggest that risk is an important barrier to sustainable crop intensification practices. We find that households that engage in risk‐management strategies, such as investing in risk‐reducing technology or engaging in precautionary savings, are more likely to practise intensified cropping. We also elaborate on the policy consequences.     

Education Financing of Rural Households in China

The purpose of this paper was to examine children’s education financing alternatives among households in rural China. Data on education financing was from a household survey conducted in three poverty villages in Guizhou, China. The difference in financing education by households was verified through non-parametric testing. Findings show that private savings is dominant in financing education of children in school. Formal loans are almost absent even in the highest wealth group examined. The findings implied that the extension of financial services to children’s education could motivate parents to send their children for more education, increase disposable income of rural households by reducing precautionary savings, and provide better-educated labors in rural China.     

A note on determinants of household saving behavior

By using cross-sectional interview data form 429 randomly selected households, four different saving estimates, namely reported bank savings, repayments of debts, total savings and a liquidity estimate, are computed and analyzed separately. Both socioeconomic characteristics and “softer” variables, such as attitudes and expectations, are used as explanatory variables.In a regression analysis the predictors used, fail to explain bank savings, while the traditional socioeconomic variables are found to influence the debt measure. The behavioral predictors are more successful in explaining the liquidity measure. When the regression result with the liquidity measure as the dependant variable (with the highest R² value) is decomposed using a hypothetical causal model and path analysis, it appears that the effects of household income and educational level of the family head are substantial. However, the intervening behavioral variables are still significant.     

Individual Pension Plans in Spain: How Expected Change in Future Income and Liquidity Constraints Shape the Behavior of Households

Understanding the motives that underlie Spaniards’ retirement saving decisions is important because many, if not most, future retirees will need to rely on personal savings to maintain a decent standard of living. The governor of the Bank of Spain has stated recently that the current public pension system will not guarantee an adequate pension to the citizens, advising to save now for retirement. In this debate on public pensions, and the complementary role that private pensions might play in Spain, this article has shed light on the decision of Spanish households to engage in individual pension plans and it has identified which factors determine the total amount saved in such retirement plans. Using micro data from the Bank of Spain (Survey of Household Finances 2011), the analysis has revealed that the expectations of lower future income, along with preferences for the financial risk and education, exert an important influence on the likelihood of enrolling in a private pension plan. University education minimizes the myopic behavior of households in the sense of making them more forward-looking and cautious in the face of their future well-being. Additionally using Heckman’s methodology to correct for the problem of selection bias, our results have revealed that liquidity constraints affect negatively the total amount of money saved for retirement.     

Adaptive responses and asset strategies: the experience of rural micro-firms and Foot and Mouth Disease

The 2001 Foot and Mouth Disease (FMD) epidemic effectively closed large parts of the UK countryside for several months. Local firms found their operations disrupted and suffered losses of trade. The individual and collective experiences of affected firms provide vivid insights into how rural businesses and the local economies they constitute operate and react in times of crisis, with important lessons for small business policy and support. Drawing upon survey and case study research the paper presents a critical incident analysis of the impacts of FMD on rural micro-businesses and a review of the resulting adaptive responses. The paper explores the role of variable endowments in influencing the choice of responses available to micro-businesses and identifies those assets which proved to be crucial in enhancing coping capability. The analysis confirms the importance of households in providing resilience to micro-businesses. Households acted as a buffer to many firms, absorbing revenue and employment effects, through adjustments in the wage taken from the business, restrictions in household spend, the deployment of personal savings and the use of household members as a flexible labour reserve.     

Utilising a farm typology to identify potential adopters of alternative farming activities in Greek agriculture

Farm household survival strategies are acknowledged to determine the adoption of alternative farm enterprises as part of the farm household's production and reproduction pattern and are, thus, used to identify the potential adopters of such enterprises. The present work utilises an ideal typology of Greek farms in order to identify different types of farms as regards their mode of survival. Each survival strategy is linked to different motives for and constraints against the adoption of alternative farm enterprises. Results show that three types of farm households may be identified, namely subsistence, survivalist and productivist farm households. The potential adopters of alternative farm enterprises may be traced among farm households that pursue a survivalist mode of production. It is argued that the diversity of farm structures observed within this type of farm households cannot be regarded as the decisive factor as far as their mode of survival is concerned. Rather, it is considered to form a context of different motivations for and constraints against the adoption of alternative farming activities.