Research on the Labor Complementation Effect of Rural Working Holidays

Abstract

This study uses “Working Holiday Iida” as an example, which is known for having one of the highest number of participating farmers in Japan, to understand the effect of contributing to supplementary labor for host farmers, which is one of the primary purposes of working holiday (WH). Due to the COVID-19 pandemic, farmers who had temporarily stopped accepting WH were forced to not only hire but also spend a significant amount on hired labor as a substitute for WH. In this study, we gathered comprehensive data on three types of externally sourced labor (WH, agricultural employment and labor exchange between farmers) at Farm A over a span of six years. We then analyzed the actual employment costs during this period and the employment opportunity cost assuming substitution for WH employment. This analysis helped us determine the magnitude of WH’s labor contribution to agricultural management.