The determinants of off-farm wages, with emphasis on the role of working “ full-time ” off the farm, are examined using data from the 2015 Agricultural Resource Management Survey and quantile regression. The targeted groups of farm operators for the analysis are based on whether health insurance coverage is obtained from the “ off-farm ” employer, and whether it is obtained from “ other ” sources. Findings indicate a negative association between “ full-time ” off-farm work and off-farm wages among farm operators in both categories who are at the higher portions of their respective off-farm wage distributions, which is in accordance with the compensating differential prediction.
White, T.K. and Hoppe, R.A. (2012) Changing Farm Structure and the Distribution of Farm Payments and Federal Crop Insurance. U.S. Department of Agriculture, Economic Research Service, EIB-91.
Ollinger, M., MacDonald, J. and Madison, M. (2005) Technological Change and Scale Economies in the Poultry Industry. American Journal of Agricultural Economics, 87, 116-129. https://doi.org/10.1111/j.0002-9092.2005.00706.x
Mishra, A.K., El-Osta, H.S., Morehart, M.J., Johnson, J.D. and Hopkins, J.W. (2002) Income, Wealth, and the Economic Well-Being of Farm Households. U.S. Department of Agriculture, Washington DC, AER-812.
Ahearn, M. (1986) Financial Well-Being of Farm Operators and Their Households. U.S. Department of Agriculture, Washington DC, AER 563.
El-Osta, H.S., Mishra, A.K. and Morehart, M.J. (2008) Farm Labor Participation Decisions of Married Farm Couples and the Role of Government Payments. Review of Agricultural Economics, 30, 311-332. https://doi.org/10.1111/j.1467-9353.2008.00406.x
Lettau, M.K. (1994) Compensation in Part-Time Jobs versus Full-Time Jobs: What if the Job Is the Same? U.S. Department of Labor, Bureau of Labor Statistics, Working Paper 260.
Nardone, T.J. (1986) Part-Time Workers: Who Are They? A New Definition of Part-Timers, Utilizing Existing Data, from the Current Population Survey, Gives a More Accurate Estimate of the Number of Part-Time Workers. Monthly Labor Review February, 13-19.
Mishra, A.K. and Goodwin, B.K. (1997) Farm Income Variability and the Off-Farm Labor Supply. American Journal of Agricultural Economics, 79, 880-887. https://doi.org/10.2307/1244429
Brown, J.P. and Weber, J.G. (2013) The Off-Farm Occupations of U.S. Farm Operators and Their Spouses. U.S. Department of Agriculture, Washington DC, EIB 117.
Jensen, H.H. and Salant, P. (1985) The Role of Fringe Benefits in Operator Off-farm Labor Supply. American Journal of Agricultural Economics, 67, 1095-1099. https://doi.org/10.2307/1241379
D’Antoni, J.M., Mishra, A.K. and Khanal, A.R. (2014) Effect of Health Insurance Coverage on Labor Allocation: Evidence from US Farm Households. Health Economics Review, 4, 1-11. https://doi.org/10.1186/s13561-014-0019-1
Rosen, S. (1986) The Theory of Equalizing Differences. In: Ashenfelter, O.C. and Layard, R., Eds., The Handbook of Labor Economics, Vol. 1, North-Holand, Amsterdam, 641-692.
Ahearn, M.C., Williamson, J.M. and Black, N. (2014) Implications of Health Care Reform for Farm Businesses and Families. Applied Economic Perspectives and Policy, 36, 1-27.
Dillender, M.O., Heinrich, C.J. and Houseman, S.N. (2016) Health Insurance Reform and Part-Time Work: Evidence from Massachusetts. Labour Economics, 43, 151-158.
Riportella, R. and O’Neill, B. (2015) You and Health Insurance: Making a Smart Choice for Farm Families. Journal of Extension, 53, 1-4.
Koenker, R. and Bassett, G. (978) Regression Quantiles. Econometrica, 46, 33-50. https://doi.org/10.2307/1913643
Leibowitz, A. (1983) Fringe Benefits in Employee Compensation. In: Triplett, J.E., Ed., The Measurement of Labor Cost, The University of Chicago Press, Chicago, 371-394.
French, M.T. and Kendall, D.L. (1992) The Value of Job Safety for Railroad Workers. Journal of Risk and Uncertainty, 5, 175-185. https://doi.org/10.1007/BF00057570
Lehrer, S.F. and Pereira, N.S. (2007) Worker Sorting, Compensating Differentials and Health Insurance: Evidence from Displaced Workers. Journal of Health Economics, 26, 1034-1056.
Monheit, A., Hagan, M., Berk, M. and Farley, P. (1985) The Employed Uninsured and the Role of Public Policy. Inquiry, 22, 348-364.
Gruber, J. (2000) Health Insurance and the Labor Market. In: Culyer, A.J. and Newhouse, J.P., Eds., Handbook of Health Economics, Vol. 1, Part A, Elsevier, New York, 645-706.
Olson, C. (2002) Do Workers Accept Lower Wages in Exchange for Health Benefits? Journal of Labor Economics, 20, S91-S114. https://doi.org/10.1086/338675
Goldman, D., Sood, N. and Leibowitz, A. (2005) Wage and Benefit Changes in Response to Rising Health Insurance Costs. Working Paper 11063, National Bureau of Economic Research, Cambridge. http://www.nber.org/papers/w11063 https://doi.org/10.3386/w11063
Mishra, K.A., El-Osta, H.S. and Ahearn, M.C. (2012) Health Care Expenditures of Self-Employed Farm Households in the United States. Agricultural Economics, 43, 75-88. https://doi.org/10.1111/j.1574-0862.2011.00566.x
Sastre, M. and Ayala, L. (2002) Europe vs. the United States: Is There a Trade-Off between Mobility and Inequality? ISER Working Papers Number 2002-26.
Duraisamy, M. and Duraisamy, P. (2016) Gender Wage Gap across the Wage Distribution in Different Segments of the Indian Labour Market, 1983-2012: Exploring the Glass Ceiling or Sticky Floor Phenomenon. Applied Economics, 48, 4098-4111. https://doi.org/10.1080/00036846.2016.1150955
Mincer, J. (1994) Schooling, Experience, and Earnings. Human Behavior and Social Institutions, 2, National Bureau of Economic Research.
Huffman, W.E. and Lange, M.D. (1989) Off-Farm Work Decisions of Husbands and Wives: Joint Decision Making. The Review of Economics and Statistics, 71, 471-480. https://doi.org/10.2307/1926904
Heckman, J. (1979) Sample Selection as a Specification Error. Econometrica, 47, 153-161. https://doi.org/10.2307/1912352
Dubin, J.A. and Rivers, D. (1989) Selection in Linear Regression, Logit, and Probit Models. Sociological Methods and Research, 18, 360-390. https://doi.org/10.1177/0049124189018002006
Buchinsky, M. (1998) The Dynamics of Changes in the Female Wage Distribution in the USA: A Quantile Regression Approach. Journal of Applied Econometrics, 13, 1-30. https://doi.org/10.1002/(SICI)1099-1255(199801/02)13:1 3.0.CO;2-A
Buchinsky, M. (2001) Quantile Regression with Sample Selection: Estimating Women’s Returns to Education in the U.S. Empirical Economics, 26, 87-113. https://doi.org/10.1007/s001810000061
Klein, R. and Spady, R. (1993) An Efficient Semiparametric Estimator of the Binary Response Models. Econometrica, 61, 387-421. https://doi.org/10.2307/2951556
Gabler, S., Laisney, F. and Lechner, M. (1993) Semiparametric Estimation of Binary-Choice Models with an Application to Labor-Force Participation. Journal of Business and Economic Statistics, 11, 61-80.
Phillips, P.C.B. (1983) ERA’s: A New Approach to Small Sample Theory. Econometrica, 51, 1505-1525. https://doi.org/10.2307/1912287
Gallant, R. and Nychka, D.W. (1987) Semi-Nonparametric Maximum Likelihood Estimation. Econometrica, 55, 363-390. https://doi.org/10.2307/1913241
Van der Klaauw, B. and Koning, R.H. (2003) Testing the Normality Assumption in the Sample Selection Model with an Application to Travel Demand. Journal of Business and Economic Statistics, 21, 31-42. https://doi.org/10.1198/073500102288618739
Albrecht, J., van Vauuren, A. and Vroman, S. (2009) Counterfactual Distribution with Sample Selection Adjustment: Econometric Theory and an Application to the Netherland. Labour Economics, 16, 383-396.
Newey, W. (2009) Two-Step Series Estimation of Sample Selection Models. Econometrics Journal, 12, S217-S229. https://doi.org/10.1111/j.1368-423X.2008.00263.x
Dustmann, C. and Meghir, C. (2005) Wages, Experience and Seniority. Review of Economic Studies, 72, 77-108. https://doi.org/10.1111/0034-6527.00325
Vella, F. (1992) Simple Tests for Sample Selection Bias in Censored and Discrete Choice Models. Journal of Applied Econometrics, 7, 413-421. https://doi.org/10.1002/jae.3950070407
Gourieroux, C., Monfort, A., Renault, E. and Trognon, A. (1987) Generalized Residuals. Journal of Econometrics, 34, 5-32.
Terza, J.V., Basu, A. and Rathouz, P.J. (2008) Two-Stage Residual Inclusion Estimation: Addressing Endogeneity in Health Econometric Modeling. Journal of Health Economics, 27, 531-543.
Huber, P.J. (1967) The Behavior of Maximum Likelihood Estimates under Nonstandard Conditions. In: Proceedings of the 5th Berkeley Symposium on Mathematical Statistics and Probability, University of California Press, Berkeley, Vol. 1, 221-223.
Dubman, R.W. (2000) Variance Estimation with USDA’s Farm Costs and Returns Surveys and Agricultural Resource Management Study Surveys. ERS Staff Paper, U.S. Department of Agriculture, Economic Research Service, AGES 00-01.
De Luca, G. (2008) SNP and SML Estimation of Univariate and Bivariate Binary-Choice Models. The Stata Journal, 8, 190-220.
Hungerford, T. and Solon, G.S. (1987) Sheepskin Effects in the Returns to Education. The Review of Economics and Statistics, 69, 175-177. https://doi.org/10.2307/1937919
Huffman, W.E. and El-Osta, H.S. (1997) Off-Farm Work Participation, Off-Farm Labor Supply and On-Farm Labor Demand of U.S. Farm Operators. Dept. Econ. SP-290, Iowa State University.
Jarque, C.M. and Bera, A.K. (1980) Efficient Tests for Normality, Homoscedasticity and Serial Independence of Regression Residuals. Economics Letters, 6, 255-259.
Vella, F. and Verbeek, M. (1999) Estimating and Interpreting Models with Endogenous Treatment effects. Journal of Business and Economic Statistics, 7, 473-478.
Stock, J.H., Wright, J.H. and Yogo, M. (2002) A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments. Journal of Business and Economic Statistics, 20, 518-529. https://doi.org/10.1198/073500102288618658
Hansen, L. (1982) Large Sample Properties of Generalized Method of Moments Estimators. Econometrica, 50, 1029-1054. https://doi.org/10.2307/1912775
Baum, C.F., Schaffer, M.E. and Stillman, S. (2007) Enhanced Routines for Instrumental Variables/Generalized Method of Moments Estimation and Testing. The Stata Journal, 7, 465-506.
Valletta, R.G. (2016) Recent Flattening in the Higher Education Wage Premium: Polarization, Skill Downgrading, or Both? Federal Reserve Bank of San Francisco, Working Paper 2016-17.
Sequeira, T.N. and Santos, M. (2015) Labour Market Returns and Wage Inequality: New Evidence for Europe. Research in Applied Economics, 7, 31-45. https://doi.org/10.5296/rae.v7i3.8020
Martins, P.S. and Pereira, P.T. (2004) Does Education Reduce Wage Inequality? Quantile Regression Evidence from 16 Countries. Labour Economics, 11, 355-371.