Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis

• Authors: Judith Möllers , Jana Fritzsch , Gertrud Buchenrieder
• Languages of publication: EN

Abstracts

EN

This paper provides an analysis of socio-economic characteristics and their influence on farm and non-farm incomes of rural households in Slovenia. With the canonical correlation analysis we use a methodological approach that offers a true multivariate procedure for both sides of the equation. It thus goes beyond a simple pair-wise correlation analysis and also beyond multiple correlation analysis. This rather rarely used statistical method offers interesting insights into many fields of analytical applications. Our results confirm that rural households usually turn towards non-farm employment if distress-push factors prevail. Besides insufficient farm incomes, large household sizes push households into non-farm diversification. Employment opportunities in the non-farm sector- regardless of whether triggered by distress in the household or demand in the non-farm sector- depend strongly on education.

Keywords

EN

Canonical Correlation Analysis; Slovenia; Rural Non-farm Sector; Diversification

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2008
• Volume: 3
• Issue: 2
• Pages: 39-48

Dates

published

2008-11-01

online

2008-12-22

Contributors

author

Judith Möllers

• Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO), Theodor-Lieser-str.2, 06120 Halle (Saale), Germany

author

Jana Fritzsch

• Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO), Theodor-Lieser-str.2, 06120 Halle (Saale), Germany

author

Gertrud Buchenrieder

• Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO), Theodor-Lieser-str.2, 06120 Halle (Saale), Germany

References

• Benjamin, C. and A. Kimhi 2006. Farm work, off-farm work and hired farm labour: estimating a discrete-choice model of French farm couple's labour decisions. European Review of Agricultural Economics 33 (2): 149-171[Crossref]
• Bojnec, S., L. Dries and J. F. Swinnen 2003. Human Capital and Labour Flows out of the Agricultural Sector: Evidence from Slovenia. Proceedings of the 25th International Conference of Agricultural Economists (IAAE), 16-22 August 2003, Durban.
• EBRD 2002. Transition Report Update. European Bank for Reconstruction and Development, London: EBRD.
• Erjavec, E., L. Juvančič, O. Oblak, M. Kožar, B. Moljk, P. Kolarek and S. Kavčič 2002. Economic Diversification and Labour Adjustment in the Rural Households in Slovenia. Working Paper EC Phare Ace Research Project P98-1090-R.
• Greif, F. 1997. Off-farm income sources and uses in transition economies. Federal Institute of Agricultural Economics, Vienna und FAO/REU, Rome.
• Hair, J. F., W.C. Black, B.J. Babin, R.E. Anderson and R.L. Tatham 1998. Multivariate Data Analysis, 5th edition, Prentice Hall International, Upper Saddle River, New Jersey.
• Hotelling, H. (1935). The Most Predictable Criterion. Journal of Educational Psychology. Vol. 26: 139-142.[Crossref]
• Juvančič, L. and E. Erjavec 2001. Rural development in Slovenia - A brief outline. Working Paper EC Phare Ace Research Project P98-1090-R.
• Marinell, G. (1990). Multivariate Verfahren, 3rd edition. Oldenburg Publisher, Munich.
• Möllers, J. 2006. Außerlandwirtschaftliche Diversifikation imTransformationsprozess.Diversifikationsentscheidungen und -strategien ländlicher Haushalte in Slowenien und Mazedonien. Studies on the Agricultural and Food Sector in Central and Eastern Europe, Vol. 35, Halle (Saale).
• Stevens, J. P. 2002. Applied Multivariate Statistics for the Social Science. 4th edition, Lawrence Erlbaum Associates, Mahwah, New Jersey.
• Stewart, D. and W. Love 1968. A General Canonical Correlation Index. Psychological Bulletin. Vol. 70, 160-163.[PubMed]
• SORS 2000. Agricultural Census 2000. Statistical Office of the Republic of Slovenia Ljubljana: SORS.
• SORS 2002. Statistical Yearbook of the Republic of Slovenia 2002. Statistical Office of the Republic of Slovenia, Ljubljana: SORS.
• Thompson, B. 1984. Canonical Correlation Analysis, Sage University Paper series on Qualitative Applications in the Social Sciences No. 47, Sage Publications, London.
• World Bank 2003. World Development Indicators. Washington, D.C.: The World Bank.

Identifiers

DOI

10.2478/v10033-008-0013-9