Title

Local Economic Conditions and Wage Labor Decisions of Farm and Rural Nonfarm Couples

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

8-1991

Journal or Book Title

American Journal of Agricultural Economics

Volume

73

Issue

3

First Page or Article ID Number

652

Last Page

670

DOI

10.2307/1242818

Abstract

Effects of geographical differences in local economic conditions on wage labor demand and wage labor participation decisions of rural couples are examined for Current Population Survey households 1978–82. Wage premiums are shown to exist for localities anticipating labor demand growth, higher unemployment rates, larger share of employment in services, and higher costs of living. These effects are stronger for males than females. Effects of local economic conditions on the probability of wage work are consistent with expected market wage and reservation wage effects, and for farm households the probability of wage work increases when expected farm output prices decline or the wage increases.

JEL Classification

J43, Q12

Comments

This is a staff paper of an article from American Journal of Agricultural Economics 73 (1991): 652, doi:10.2307/1242818.