Assessment of labour supply mobility on agricultural holdings in Slovenia in the period 1991–2000

Abstract

The paper aims in quantitative evaluation of various determinants on labour supply mobility on agricultural households in Slovenia. Through the use of longitudinal dataset, quantitative analysis of intertemporal employment decisions of farm holders is carried out by application of agricultural household modelling. Two sets of probit models were applied. Functional forms of the models differ with respect to the predicteded effect of previous employment status of reference person. Determinants tested refer to personal characteristics of reference persons (gender, age, education level, opportunity off-farm income), household characteristics (size, structure), characteristics of the agricultural holding (economic size, labour input, labour intensity) and local labour market conditions. Despite specific macroeconomic and structural conditions, the model results do not differ considerably from the existing empirical evidence on labour supply dynamics on agricultural households. Participation of holders at the labour market is neither symmetrical nor reversible. Results reveal a marked tendency towards upkeeping of the same employment status, which is more distincted in the case of holders employed on the farm. A low level of labour supply mobility worsens efficiency of labour allocation on agricultural holdings. Elements of this problem emerge on both, supply (e.g. low level of educational and professional attainment of reference persons) and demand side of labour market (e.g. unfavourable local labour market conditions).