Labour-use pattern on Swiss dairy farms

Abstract

Abstract: Analysing the labour-use pattern on Swiss dairy farms, we apply a typology scheme with two criteria: on-farm wage labour and off-farm family labour. The resultant four farm types are analysed based on the data from the Swiss Farm Accountancy Data Network (FADN) as well as the spatial data on available jobs. Only 17% of dairy farms have neither on-farm wage labour nor off-farm family labour. 60 % have family members involved in off-farm activities. On average, 0.3 annual work units (AWU) are employed in off-farm activities, earning double the on-farm income per AWU. In line with the literature, we found that the likelihood of on-farm wage labour increases with the farm size and the degree of diversification. Involvement in off-farm activities is more likely if the farm manager is young and has a spouse with a non-agricultural education. Furthermore, private consumption per consumer unit has a positive marginal effect on the likelihood of off-farm work. Finally, no evidence was found of available jobs within a range of 10 kilometres acting as a proxy for the local labour demand for off-farm activities, leading us to the conclusion that involvement in off-farm work is an option for most of the analysed dairy farms.