Farm subsidies and agricultural employment: The education channel
AbstractAgricultural employment in industrialized countries has been steadily decreasing despite important levels of farm subsidies. We argue that one explanation to this puzzle is the positive impact of subsidies on the education levels of farmers’ children. If farmers are credit constrained, they may underinvest in their children’s education. By increasing farmers’ revenues, subsidies increase investment in education. If more educated children are less willing to become farmers, one long term effect of subsidies is to reduce labor supply in the agricultural sector. We provide a theoretical model and some empirical evidence supporting this argument.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 122nd Seminar, February 17-18, 2011, Ancona, Italy with number 99424.
Date of creation: 10 Feb 2011
Date of revision:
Agricultural Employment; Farm Subsidies; Education; Credit Constraints; Agricultural and Food Policy; Q12; Q18; I20; J62;
Other versions of this item:
- Berlinschi, Ruxanda & Van Herck, Kristine, 2011. "Farm Subsidies and Agricultural Employment: The Education Channel," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114248, European Association of Agricultural Economists.
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- I20 - Health, Education, and Welfare - - Education - - - General
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-03-05 (Agricultural Economics)
- NEP-ALL-2011-03-05 (All new papers)
- NEP-LAB-2011-03-05 (Labour Economics)
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