Off-farm work decisions on Dutch cash crop farms and the 1992 and Agenda 2000 CAP reforms

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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 languageEnglish
Pages (from-to)163-171
JournalAgricultural Economics
Volume22
Issue number2
DOIs
Publication statusPublished - 2000

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