Relative Growth of Subsidiary Farming in Post-Soviet Economies: A Labor Supply Story

Lyubov A. Kurkalova, Helen H. Jensen
September 2000  [00-WP 249]

The authors analyze the changes in labor supply of post-Soviet households using an agricultural household model (AHM). Extensions of the model are presented in which wage and pension arrears are modeled as income uncertainty. Considering two models, one for wage earning households and another for pensioners, the authors find that wage and pension uncertainties increase subsidiary farming hours, as does a mean-preserving spread in the distribution of pensions. A decline in the probability of receiving wages not only increases subsidiary farming hours but also reduces wage work hours.

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