How Valuable is On-Farm Work to Farmers?

Posted: 26 Mar 2004

See all articles by Madior Fall

Madior Fall

Institut National de la Recherche Agronomique (INRA)

Thierry Magnac

Toulouse School of Economics; University of Toulouse 1 - Industrial Economic Institute (IDEI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Abstract

In this article, we estimate a rural household model that allows specific tastes for working on-farm and can fit the data as well as the general model of Lopez. We use two samples that are matched by individual characteristics and adopt the method for matched surveys proposed by Arellano and Meghir. We replicate using French data, the empirical finding of Elhorst who reports evidence that implicit wages of on-farm family labor are significantly below off-farm wages. We then provide estimates of the lower bounds for preferences for on-farm work for males and females which are significant and positive.

Suggested Citation

Fall, Madior and Magnac, Thierry, How Valuable is On-Farm Work to Farmers?. Available at SSRN: https://ssrn.com/abstract=513315

Madior Fall (Contact Author)

Institut National de la Recherche Agronomique (INRA) ( email )

147, rue de l'Universite
Paris Cedex 07, 78-Yvelines 75338
France

Thierry Magnac

Toulouse School of Economics ( email )

Manufacture des Tabacs
21 Allees de Brienne
Toulouse, 31000
France

University of Toulouse 1 - Industrial Economic Institute (IDEI) ( email )

Manufacture des Tabacs
21 Allee de Brienne bat. F
Toulouse Cedex, F-31000
France

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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