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© 1988 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Estimating a labour supply function of farm households**

GEERT THIJSSEN*

Dept. of Agricultural Economics and Policy, Agricultural University Hollandseweg 1, 6706 KN Wageningen, The Netherlands
*Department of Agricultural Economics and Policy, Agricultural University Wageningen, The Netherlands

Received June 1, 1987; Revision received December 1, 1987.

Summary

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.


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