1988•European Review of Agricultural EconomicsOpen access
Estimating a labour supply function of farm households
G. Thijssen
Open full text 23 citations
Abstract
The supply elasticity of family labour on dairy farms is estimated using a utility function with income and leisure as variables, and a non-linear budget constraint linking income through a quadratic production function to labour supply. Using a local linear approximation to this constraint and distinguishing one other variable input, the endogenous wage elasticity of labour supply is derived. It turns out to be small.