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Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators
Ist Teil von
American journal of agricultural economics, 2006-05, Vol.88 (2), p.393-408
Ort / Verlag
Malden: Blackwell Publishing, Inc
Erscheinungsjahr
2006
Quelle
Wiley-Blackwell Journals
Beschreibungen/Notizen
With the 1996 Farm Act, the United States introduced payments that were designed to be "decoupled." Labor allocation choices are likely to be affected by receipt of payments, and income from off-farm jobs has been the major source of income for most farm households for sometime. This article examines whether the 1996 change has affected the off-farm labor participation of farm households. We conclude that the observed increase in off-farm participation of farm operators who received payments was not the result of the 1996 policy change. Government payments, whether coupled or decoupled, have a negative effect on off-farm labor participation.