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Intertemporal analysis of employment decisions on agricultural holdings in Slovenia
Juvančič, Luka ; Erjavec, Emil
The paper attempts to quantify determinants influencing dynamics of employment decision on agricultural households in Slovenia and to test specific aspects of labour reallocation during transition ...period by application of agricultural household model. Through the use of 1991-2000 panel data for 22,055 farm households, quantitative analysis of intertemporal employment decisions of farm holders is carried out by the use of probit techniques. The determinants tested relate to the personal characteristics of farm holders (gender, age, education level, opportunity off-farm income), household characteristics (size, structure), characteristics of agricultural holding (economic size, labour input, labour intensity) and local labour market conditions. The model results generally confirm the existing empirical evidence on asymmetrical and irreversible participation of holders on the labour market. Despite intensive restructuring of agriculture and profund changes in non-farm labour market in the analysed period, labour supply of farm holders remains rigid. The mobility oflabour supply is lower than expected, which can be attributed to the importance of structural problems constraining intersectoral mobility. A low level of labour supply mobility reduces the efficiency of labour allocation on agricultural holdings in Slovenia. Elements of this problem emerge on both, supply (e.g. low level of educational and professional attainment of refernce person) and demand sides of labour market (e.g. unfavourable local market conditions). A merked tendency towards maintaining the same employment status is more distinct in the case of holders employed on-farm only.
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