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Income deiversification and labor adjustment in the rural economy of Slovenia
Juvančič, Luka ; Kuhar, Aleš, 1974- ; Kožar, Maja
The paper investigates the issue of income diversification among rural households in Slovenia. Special emphasis is given to the analysis of characteristics of agricultural households that determine ...their income diversification strategies. The data used in the analysis is based on a survey of 120 rural households. Empirical insight to the key income diversification determinants is provided by the application of a multiple discriminant analysis. The results largely confirm the hypothesis that household members, in persuit of their income objectives, choose between various income alternatives with respect to (1) available production assets, (2) capacity of labor supply and abilities to compete on non-farm labor market and (3) individual motives and preferences. Based on these results, the paper gives some broad recommendations on how to develop a differentiated rural development policy framework that takes into account diversified income and activity portfolios of rural Slovenian households.
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