QUASI-MAXIMUM LIKELIHOOD ESTIMATION OF MULTIVARIATE PROBIT MODELS - FARM COUPLES LABOR PARTICIPATION

Joint estimation of farmers' farm and off-farm work participation requires a multivariate probit model, in which the number of equations is twice the number of household members. Where there are more than two such equations, I suggest a quasi maximum likelihood method which requires only two levels of numerical integration. The method maximizes the use of sample information given this numerical feasibility condition. It is used for estimating a joint participation model of farm couples' farm and off-farm work. The model yields conclusions about comparative advantages of men and women in farm, off-farm, and housework, which cannot be obtained with a more limited setup.