Hidden Underemployment Among Irish Farm Holders 1996-2011

32 Pages Posted: 7 Jan 2014

See all articles by Jason Loughrey

Jason Loughrey

Teagasc Rural Economy and Development Programme

Thia Hennessy

Teagasc Rural Economic Research Centre (RERC)

Date Written: May 1, 2013

Abstract

This paper examines the factors driving hidden underemployment on Irish farms during the course of the economic boom in Ireland and the subsequent economic decline post 2008. This measure of hidden underemployment is due to differences between the farmer's reported amount of labour and the standard labour requirement estimated in the Teagasc National Farm Survey. Hidden underemployment can be attributed to a number of factors relating to inadequate employment situations as described at the 16th International Conference of Labour Statisticians (16th ICLS) such as low productivity, casual work practices and the poor utilisation of skills and other factors specific to agriculture and/or self employment. We place particular attention upon the potential role of off-farm labour supply in solving the underemployment problem. We use a two-stage residual inclusion model and a random effects probit model to examine the forces behind farm underemployment. This paper provides an interesting set of results given that the end of the economic boom phase coincided closely but not precisely with the decoupling of farm-level subsidies in 2006.

Keywords: Hidden Underemployment, Inadequate Employment Situations, Probit Model, Labour Supply, Off Farm Employment

JEL Classification: J22, J43, Q12

Suggested Citation

Loughrey, Jason and Hennessy, Thia, Hidden Underemployment Among Irish Farm Holders 1996-2011 (May 1, 2013). Available at SSRN: https://ssrn.com/abstract=2259074 or http://dx.doi.org/10.2139/ssrn.2259074

Jason Loughrey (Contact Author)

Teagasc Rural Economy and Development Programme ( email )

Athenry
Galway
Ireland

Thia Hennessy

Teagasc Rural Economic Research Centre (RERC) ( email )

Oak Park
Athenry
Carlow
Ireland

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