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
Date Written: November 20, 2001
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
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