Factors affecting off-farm labor supply: a case study of Fiji sugar cane farmers

Abstract

This paper examines some of the factors that determine the supply of labour for off-farm employment among forty sample cane farmers in the Cuvu and Olosara sectors in the Sigatoka area, Fiji. A conceptual model of the allocation of labour between farm and offfarm is developed based on other similar studies and labour economics and applied to the 1983 data. The Tobit maximum likelihood procedure is utilized to text the influences of the life cycle, level of human capital, opportunities for off-farm work, non-wage income and net farm income on the off-farm labour supply of household members. The econometric study of the off-farm labour supply function showed that the availability of off-farm employment introduces a range of additional decisions with regard to the efficient allocation of available household labour. The significant determinants of off-farm labour supply were age, level of human capital, the existence of opportunities and the level of non-wage income. Net farm income was not found to be significant in determining off farm labour supply. Show more