Abstract:
The objective of this paper is to assess the currently available literature relating to the labour allocation of farm households. An overview of the theoretical model relating to joint participation and hours of labour supply decisions of farm households is presented; followed by the resulting empirical specification. A discussion of the factors affecting both the participation in an off-farm job and the level of off-farm labour supplied is then undertaken and empirical findings from a range of studies are presented. There is found to be a degree of consensus among authors in relation to the variables chosen to explain the decisions and the nature of the relationships established. Broadly speaking, household characteristics have a stronger influence on spouses decisions than on operators, and farm characteristics have a stronger impact on operators decisions than spouses.
