I am examining the impacts of agricultural mechanization on labor. A new piece of farm equipment for crop A can reduce a farmer's cost, increasing his overall farm profits. The adoption of the machinery results in reduce field labor (which I will calculate directly outside of Implan). I am assuming that as a result of higher profits for the crop the farmer will change his cropping mix, growing more of the now more profitable crop A and less of another less profitable crop, crop B (both crops are similar e.g., both are vegetable crops). I am willing to assume the labor associated with growing both crops are the same (the labor required to drive a tractor for crop A is similar to the labor required to drive a tractor for crop B) - so indirect labor effects should be similar (and because both crops are in the same implan cateogry the production functions will be the same). I would like to be able to identify increased induced labor effects resulting from higher proprietor income (higher farmer income). How can I do this?
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