Employer-Sponsored Health Insurance Coverage, Government Payments, and Labor Allocation: The Case of US Farm-Operator Households

This study investigates the impact of health insurance coverage and participation in government counter-cyclical, conservation, and risk management programs on off-farm labor allocation decisions among US farm-operator households. Using household-level data, this study employs a simultaneous probit estimation method to estimate the empirical model. Results show that US farm-operator households with employer-sponsored health insurance coverage are also 14% more likely to work off farm. Second, farm families’ off-farm work is associated with a 4% increase in health insurance coverage. Counter-cyclical, conservation, risk management payments have a negative and significant effect on US farm-operator households’ off-farm work decisions.