Labour Supply and Inequality for Wage-Earning Farm Households in Spain

We provide empirical evidence on labour supply and inequality for wage-earning farm households in Spain, using two cross-sections from 1991 and 1994. The fundamental results can be divided into two groups. With respect to the labour supply: i) household size has a positive effect on male supply and a negative effect on female supply; ii) if there are children younger than 4, the female supply reduces, whereas that corresponding to males increases; iii) if the housing area is Andalusia or Extremadura, this reduces the number of worked hours by both spouses and iv) the income elasticities are negative, and both the male and female labour supplies are increasing. As regards the welfare analysis: i) monetary income is a good welfare indicator; ii) welfare inequality is lower than income inequality and, finally, iii) inequality among the wage-earning farm households in Spain has increased between 1991 and 1994.