Does agricultural cooperative membership influence off‐farm work decisions of farm couples?

Abstract

AbstractMembership in agricultural cooperatives may influence intra‐household decisions regarding the division of household labor. However, the linkages between cooperative membership and labor allocation remain unexplored. To fill this gap, we examine the impact of cooperative membership on off‐farm work decisions of couples engaged in farming, using data collected from 595 banana farmers in China. The recursive bivariate probit model and endogenous‐treatment Poisson regression model are employed to address the self‐selection bias inherent in cooperative membership. The results show that cooperative membership increases the probability of participating in off‐farm work by 38% for husbands and 31% for wives. Having large households reduces the probability of husbands but increases that of wives working off‐farm. Cooperative membership is also associated with more time spent on off‐farm work and higher earnings for both husbands and wives. Our findings point to the potential of agricultural cooperatives to increase farm couples’ off‐farm employment, thus increasing household income and quality of life.