Relative Growth of Subsidiary Farming in Post-Soviet Economies: A Labor Supply Story

Date
2000-09-01
Authors
Kurkalova, Lyubov
Jensen, Helen
Jensen, Helen
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Altmetrics
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Center for Agricultural and Rural Development
Abstract

An agricultural household model (AHM) is applied to analyze the changes in labor supply of post-Soviet households. Extensions of the model are presented in which wage and pension arrears are modeled as income uncertainty. Considering two models, one for wage earning households and another for pensioners, we find that wage and pension uncertainties increase subsidiary farming hours and so does a mean-preserving spread in the distribution of pensions. A decline in the probability of receiving wages not only increases subsidiary farming hours but also reduces wage work hours.

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