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Hidden Underemployment Among Irish Farm Holders 1996-2011
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2013
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Loughrey, J. and Hennessy, T. Hidden Underemployment Among Irish Farm Holders 1996-2011 (May 1, 2013). 87th Agricultural Economics Society Annual Conference, University of Warwick, United Kingdom, April 8-10, 2013. http://dx.doi.org/10.2139/ssrn.2259074
Abstract
This paper examines the factors driving hidden underemployment on Irish farms
during the course of the economic boom in Ireland and the subsequent economic
decline post 2008. This measure of hidden underemployment is due to differences
between the farmer‟s reported amount of labour and the standard labour requirement
estimated in the Teagasc National Farm Survey. Hidden underemployment can be
attributed to a number of factors relating to inadequate employment situations as
described at the 16th International Conference of Labour Statisticians (16th ICLS) such
as low productivity, casual work practices and the poor utilisation of skills and other
factors specific to agriculture and/or self employment. We place particular attention
upon the potential role of off-farm labour supply in solving the underemployment
problem. We use a two-stage residual inclusion model and a random effects probit
model to examine the forces behind farm underemployment. This paper provides an
interesting set of results given that the end of the economic boom phase co-incided
closely but not precisely with the decoupling of farm-level subsidies in 2006.