The Demand for Hired Labour on Australian Sheep Farms

The motivation for this study was provided by the interest currently being expressed in the effects of rising wage rates and other factors on the employment levels in various industries in Australia. An attempt is made to examine a number of key factors affecting the demand for labour in a major subsector of Australian agriculture. Using the average farm-firm approach, a time-series econometric model of the demand for hired labour for Australian sheep farms is developed and estimated. Major findings on the determinants of labour demand are discussed, together with their policy implications