Off-farm work decisions on Dutch cash crop farms and the 1992 and Agenda 2000 CAP reforms
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A double hurdle model of off-farm work participation and off-farm labour income was derived and estimated consistent
with a farm household model. It was found that rationing and unexpected transaction costs inhibit farm households from
participating in off-farm work. The 1992 and the Agenda 2000 CAP reforms are most likely to increase the off-farm
employment of arable farm households, but its full effect cannot be realised because of inhibitions to enter off-farm activities.
Household and farm characteristics have different impacts on off-farm work participation and on the level of off-farm labour
income. © 2000 Elsevier Science B.V. All rights reserved.