PARTICIPATION OF FARM OWNERS IN FARM AND OFF‐FARM WORK INCLUDING THE OPTION OF FULL‐TIME OFF‐FARM WORK

The option of working full‐time off the farm is generally neglected in farmers' time allocation studies. In this paper, a generalised multinomial logit model, in which the choices are working only on the farm, allocating the time between farm and off‐farm work, or working only off‐farm, is estimated using Israeli data. The results show that the explanatory variables have significantly different effects on utility for off‐farm workers who also work on the farm versus those who do not. There seem to be incentives to work full time rather than part time off the farm. These conclusions cannot be reached if farm owners who do not work on the farm are excluded from the estimation. The conclusions imply that policy intended to encourage pluriactivity could instead result in increased specialisation in full‐time farm work or full‐time off‐farm work if it does not target the right incentives.