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Off-farm Activities by Agricultural Households in Nicaragua: Exploiting Comparative Advantages or Fighting Agricultural Problems?

U of Aarhus Economics Working Paper No. 2001-11

36 Pages Posted: 26 Nov 2001  

Nikolaj Malchow-Moeller

Copenhagen Business School - Center for Economic and Business Research (CEBR); University of Southern Denmark

Michael Svarer

University of Aarhus - Department of Economics; Institute for the Study of Labor (IZA)

Date Written: November 20, 2001

Abstract

This paper considers off-farm labour activities by agricultural households in Nicaragua. It compares the role of: i) comparative advantages of households and individuals; and ii) agricultural conditions and market imperfections, in shaping off-farm labour supply. An econometric specification is developed which allows for random household-specific effects and easy estimation. Results reveal that non-agricultural off-farm work is largely determined by comparative advantages, whereas agricultural off-farm work is used extensively to deal with a number of agricultural conditions and market imperfections.

Keywords: Off-farm labour supply, household behaviour, household-specific effects

JEL Classification: O1, D1, J22, J43, N36, Q12

Suggested Citation

Malchow-Moeller, Nikolaj and Svarer, Michael, Off-farm Activities by Agricultural Households in Nicaragua: Exploiting Comparative Advantages or Fighting Agricultural Problems? (November 20, 2001). U of Aarhus Economics Working Paper No. 2001-11. Available at SSRN: https://ssrn.com/abstract=291964 or http://dx.doi.org/10.2139/ssrn.291964

Nikolaj Malchow-Moeller (Contact Author)

Copenhagen Business School - Center for Economic and Business Research (CEBR) ( email )

Solbjerg Plads 3
Copenhagen, DK-2000
Denmark

University of Southern Denmark

Campusvej 55
DK-5230 Odense, 5000
Denmark

Michael Svarer

University of Aarhus - Department of Economics ( email )

Universitetsparken
Building 350
DK-8000 Aarhus C
Denmark
+45 8942 1598 (Phone)
+45 8613 6334 (Fax)

Institute for the Study of Labor (IZA)

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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