Explaining off-farm labour supply : the importance of income

Abstract

We have collected a panel of 4,723 farm holders as of 1994. In 1995 these farmers face the choice either to continue or to quit farming, for example by working full time in an another industry. Presumable, when individuals take this choice, income possibilities in and out of farming will count. By using a multinomial logit model we investigate the empirical importance of income considerations. According to our econometric results, incomes enter significantly into the decision process.