We estimate a full system of structural farm and off‐farm labor supply equations of farm couples as a set of simultaneous equations with categorical dependent variables. In a first step, the reduced form is estimated by ordered probit with unknown thresholds. Then, the identified structural coefficients are recovered from the reduced‐form coefficients through minimum distance estimation. Using census data from Israel, we find that for men, a one‐hour increase in farm labor supply causes a one‐hour decrease in off‐farm labor supply, but not for women. This could not have been found without estimating structural coefficients.
No takes yet. Share an insight, caveat, or question.
Kimhi et al. (1996) studied this question.
Synapse has enriched 3 closely related papers on similar clinical questions. Consider them for comparative context: