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THE ESTIMATION OF OFF‐FARM LABOUR SUPPLY FUNCTIONS IN SASKATCHEWAN
Author(s) -
Furtan W. H.,
Kooten G. C.,
Thompson S. J.
Publication year - 1985
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1985.tb00167.x
Subject(s) - economics , wife , shadow price , estimation , wage , labour supply , shadow (psychology) , sample (material) , labour economics , agricultural economics , mathematics , management , chromatography , political science , law , psychotherapist , psychology , mathematical optimization , chemistry
In this paper, a farm‐household utility maximising model which incorporates the time of both the farm operator and his wife is developed. The model is then used to estimate the off‐farm labour supply of the operator and his wife, and develop policy recommendations concerning further increases in off‐farm labour participation by farmers and their wives. A Heckman procedure is employed to test for sample selectivity bias. The results suggest that the supply of off‐farm labour is inelastic for men but quite responsive to the estimated shadow wage for women.