A comparative study of rural Virginia farm and non farm household labor supply

This study compares rural Virginia two-adult farm and non-farm household labor supply on two levels: (1) labor market participation and (2) variations in labor supply to the market and to the home. The study develops three models: a selection model, a wage rate model, and a labor supply model. Estimation is performed with data collected from rural Virginia by the Virginia Agricultural Statistical Service in 1989 and by North American Research in 1990.

The estimates of the selection equations indicate significant differences in the effects of human capital and unearned income on labor market and wage employment participation of rural Virginia farm and non-farm households.