Abstract
A double hurdle model of off-farm work participation and off-farm labour income was derived and estimated consistent with a farm household model. It was found that rationing and unexpected transaction costs inhibit farm households from participating in off-farm work. The 1992 and the Agenda 2000 CAP reforms are most likely to increase the off-farm employment of arable farm households, but its full effect cannot be realised because of inhibitions to enter off-farm activities. Household and farm characteristics have different impacts on off-farm work participation and on the level of off-farm labour income.
Original language | English |
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Pages (from-to) | 163-171 |
Journal | Agricultural Economics |
Volume | 22 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2000 |
Keywords
- CAP reform
- Double hurdle model
- Dutch arable farms
- Off-farm labour income
- Off-farm work participation