Off-Farm Labor Supply Effects of Farm Mechanization
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This paper examines off-farm labor supply effects of farm mechanization. The conceptual framework in the paper suggests positive effect of farm mechanization on farm operator’s off-farm labor supply. The paper uses adoption of tractor as proxy measure of farm mechanization and utilizes a nationally representative household survey dataset from Bangladesh. Using Probit and Tobit models, the paper finds support for the proposition that farm mechanization boosts farm operator’s off-farm labor supply.