Research Article

Does Off-Farm Work Improve Farm Income? Empirical Evidence from Tolon District in Northern Ghana

Table 4

Results of the Heckman selection model of off-farm work and farm income.

Independent variablesProbit modelOutcome equation
CoefficientStd. errorCoefficientStd. error

Sex−0.5230.241437.2552.0
Age0.2900.096−814.0223.9
Age squared−0.0040.00112.262.992
Education0.0540.018−18.4137.86
Farm size0.5900.127849.6150.3
Access to credit−0.1160.2361281541.3
Number of dependents−0.1210.050
Constant−5.6101.901142024283
Inverse Mill’s ratio (λ)−81.680.095
Rho−0.8810.079
Sigma2342.7303.5
Lambda−2064.7423.4

Selected observations64
Unselected observations86
Wald chi2 (6)187
Prob > chi20.00

LR test of independent equations (rho = 0): chi2(1) = 8.94, prob > chi2 = 0.003. Statistical significance at 10% level. Statistical significance at 5% level. Statistical significance at 1% level. (6) and (1) indicate the degrees of freedom for the chi-squared estimation.