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Labour adjustment in agriculture: Assessing the heterogeneity across transition countries

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  • Herzfeld, Thomas
  • Dries, Liesbeth
  • Glauben, Thomas

Abstract

A standard model of labour adjustment in times of economic transition assumes a constant impact of variables like sectoral income differences, unemployment or the relative size of the agricultural sector. This paper shows for a panel of 29 European and Asian transition countries that the standard model fails to take the heterogeneity of determinants of sectoral labour adjustment properly into account. A random coefficients model reveals quite heterogeneous influences of the intersectoral income ratio, the relative size of agricultural employment, the unemployment rate, and the general level of economic development on a measure of sectoral labour adjustment across transition countries. Moreover, for selected determinants the estimated coefficients show opposing signs.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114540.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114540

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Keywords: Labor and Human Capital;

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  1. Stefan Bojnec & Liesbeth Dries, 2005. "Causes of Changes in Agricultural Employment in Slovenia: Evidence from Micro-data," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 399-416.
  2. Johan F. M. Swinnen, 1999. "The political economy of land reform choices in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 637-664, November.
  3. Sorm, Vit & Terrell, Katherine, 2000. "Sectoral Restructuring and Labor Mobility: A Comparative Look at the Czech Republic," IZA Discussion Papers 111, Institute for the Study of Labor (IZA).
  4. Baltagi, Badi H. & Wu, Ping X., 1999. "Unequally Spaced Panel Data Regressions With Ar(1) Disturbances," Econometric Theory, Cambridge University Press, vol. 15(06), pages 814-823, December.
  5. Raiser, Martin & Schaffer, Mark E & Schuchhardt, Johannes, 2003. "Benchmarking Structural Change in Transition," IZA Discussion Papers 727, Institute for the Study of Labor (IZA).
  6. Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2003. "Intersectoral migration in Southeast Asia - evidence from Indonesia, Thailan, and the Philippines," Policy Research Working Paper Series 2949, The World Bank.
  7. Lerman, Zvi & Csaki, Csaba & Feder, Gershon, 2002. "Land policies and evolving farm structures in transition countries," Policy Research Working Paper Series 2794, The World Bank.
  8. Sabine Bernab? & Marco Stampini, 2008. "Labour mobility during transition: evidence from Georgia," LICOS Discussion Papers 20608, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  9. Butzer, Rita & Larson, Donald F & Mundlak, Yair, 2002. "Intersectoral Migration in Venezuela," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 227-48, January.
  10. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
  11. Sabine Bernabè & Marco Stampini, 2009. "Labour mobility during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(2), pages 377-409, 04.
  12. Mundlak, Yair, 1978. "Occupational Migration out of Agriculture-A Cross-Country Analysis," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 392-98, August.
  13. Dries, Liesbeth & Swinnen, Johan F. M., 2002. "Institutional Reform and Labor Reallocation During Transition: Theory Evidence From Polish Agriculture," World Development, Elsevier, vol. 30(3), pages 457-474, March.
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