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 variables
Probit model
Outcome equation
Coefficient
Std. error
Coefficient
Std. error
Sex
−0.523
0.241
437.2
552.0
Age
0.290
0.096
−814.0
223.9
Age squared
−0.004
0.001
12.26
2.992
Education
0.054
0.018
−18.41
37.86
Farm size
0.590
0.127
849.6
150.3
Access to credit
−0.116
0.236
1281
541.3
Number of dependents
−0.121
0.050
Constant
−5.610
1.901
14202
4283
Inverse Mill’s ratio (λ)
−81.68
0.095
Rho
−0.881
0.079
Sigma
2342.7
303.5
Lambda
−2064.7
423.4
Selected observations
64
Unselected observations
86
Wald chi2 (6)
187
Prob > chi2
0.00
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.