| Most U.S. farm households have either the operator or spouse working off-farm for wages and salaries or proprietorships. Additionally, off-farm income continues to grow as a share of total household income. Little is known about how changes in local industrial composition impact off-farm labor decisions. Using a household utility maximization framework, this analysis employs a two-stage process to 1) predict joint off-farm labor participation of operators and spouses, and 2) measure the impact of farm and household characteristics, and changes in county-level industry on levels of off-farm labor supply. Results show that labor participation decisions are jointly determined. Human capital is among the most significant individual characteristics impacting... |
