Off-Farm Employment Decisions by Massachusetts Farm Households

The off-farm labor participation and supply decisions of Massachusetts farm families were estimated in a model which allows for joint decisions. The hypothesis of joint off-farm participation decisions by operators and spouses was rejected. However, there was some evidence that the hours supplied by the farm operator was dependent upon the decision by the spouse to work off-farm. Farm operators were found to respond to both family and farm characteristics in making participation and supply decisions. Spouses respond to the characteristics of the farm and family in participation decisions while family characteristics determined hours worked by the spouse.