Estimating the wage elasticity of off-farm labour supply of farmers in Kemubu, Kelantan

• Main Authors: Tai, Shzee Yew, Chew, Tek Ann
• Format: Article
• Language: English
• Published: 1986
• Online Access: http://psasir.upm.edu.my/id/eprint/39121/1/aar%20178%20Estimating%20The%20Wage%20Elasticity%20Of%20Offfarm.pdf; http://psasir.upm.edu.my/id/eprint/39121/

Off-farm labour supply is very important in the transformation of agricultural economies to industrial economies. Two econometric models were used to estimate the wage elasticity of off-farm labour supply in Kemubu, Kelantan, Malaysia. A wage elasticity of approximately 2.0 was obtained from both models. The study revealed that severe poverty exist in single-cropped areas outside Kemubu. Farm households are more pressed for time with off-farm employment in double-cropped areas inside Kemubu. The twin-strategies of intensifying paddy cultivation and creating off-farm employment opportunities can be carried out concurrently. To induce farmers to seek off-farm employment to augment farm incomes, off-farm employment opportunities should be created close to farm households and development policies should aim at improving the level of educational and vocational skills of farmers