Towards a New Socioeconomic Classification Scheme for Farm Households Using a Cluster Analysis Technique
In developed economies farm households are increasingly involved in non-farm activities and consequently, total household income depends a great deal on non-farm sources. This changing pattern of the prevalence in farm and non-farm work and income provides a challenging task regarding the identification and separation of farm households with corresponding characteristics of labor supply and sources of livelihood. There are different approaches to tackle this problem, e.g. by establishing a scheme which attempts to classify farm households according to socioeconomic characteristics. Their main objectives are a thorough representation, monitoring and interpretation of structural changes within the agricultural sector. Additionally, these schemes facilitate the identification of farm households with social or economic/financial difficulties and they provide assistance in designing and implementing policy instruments. Most commonly, the categorization schemes are based on criteria like the main activity of the farm manager or the predominant source of livelihood. This results in a scheme which identifies full-time or part-time farm holdings.
KeywordsLabor Supply Farm Household Total Household Income Family Life Cycle Farm Holding
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