Journal Article

Effects of the Internal Wage on Output Supply: A Structural Estimation for Japanese Rice Farmers

Tadashi Sonoda and Yoshihiro Maruyama

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 81, issue 1, pages 131-143
Published in print February 1999 | ISSN: 0002-9092
Published online February 1999 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244456
Effects of the Internal Wage on Output Supply: A Structural Estimation for Japanese Rice Farmers

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  • Wages, Compensation, and Labour Costs
  • Agricultural Economics

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The “shadow” or “internal” wage plays a crucial role, via the “internal wage effect,” in models of agricultural households with absent or constrained off-farm wage employment. To verify its empirical relevance, parameters of the production and welfare functions are estimated for Japanese rice farmers. It is inferred from this structural estimation that their off-farm wage employment is actually constrained and that the “internal wage effect” of changes in the price of rice significantly influences their supply of rice.

Keywords: downward-sloping supply function; internal wage; structural estimation; J310; Q120

Journal Article.  0 words. 

Subjects: Wages, Compensation, and Labour Costs ; Agricultural Economics

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