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The substitution of capital for labor and new labor-saving technologies has reduced the laborrequired for farming, yet many farms today depend on hired labor in some form. Common inthe literature is the assumption of perfectly substitutable farm labor. This has implications forthe operator’s off-farm labor decision. Intuitively, different forms of farm labor have differentimpacts on production. We use the Agricultural and Resource Management Survey to estimatethe elasticity of substitution between hired and family labor. The results provide littleevidence to support the popular homogeneity assumption and find labor can be unitary andcomplimentary under certain scenarios.

Keywords: cash gains ; family ; farm labor ; heterogeneity ; hired labor ; homogeneity ; labor ; seemingly unrelated ; substitution

Editor(s): Bosch, Darrell J.

Marchant, Mary A.

McKenzie, Andrew M.

Paudel, Krishna P.

Subject(s): Agribusiness

Agricultural and Food Policy

Consumer/Household Economics

Labor and Human Capital

Productivity Analysis

Issue Date: May 01 2014

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/169062 Published in: Journal of Agricultural and Applied Economics, Volume 46, Number 2 Page range: 273-284

Total Pages: 12

JEL Codes: D13; J22; J23; Q12; Q18; R38

Record appears in: Southern Agricultural Economics Association (SAEA) > Journal of Agricultural and Applied Economics





Autor: D-Antoni, Jeremy M. ; Khanal, Aditya R. ; Mishra, Ashok K.

Fuente: http://ageconsearch.umn.edu/record/169062?ln=en







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