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Intensity of Off-Farm Employment and Its Impact on Wage Distribution: Does the Source of Health Insurance Coverage Matter?

DOI: 10.4236/tel.2017.76116, PP. 1713-1734

Keywords: Agricultural Resource Management Survey, Off-Farm Wage Gap, Full-Time Work, Health Insurance Coverage, Quantile Regression, Semi-Nonparametric Regression

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Abstract:

The determinants of off-farm wages, with emphasis on the role of working full-time off the farm, are examined using data from the 2015 Agricultural Resource Management Survey and quantile regression. The targeted groups of farm operators for the analysis are based on whether health insurance coverage is obtained from the off-farm employer, and whether it is obtained from other sources. Findings indicate a negative association between full-time off-farm work and off-farm wages among farm operators in both categories who are at the higher portions of their respective off-farm wage distributions, which is in accordance with the compensating differential prediction.

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