Does Common Agricultural Policy Reduce Farm Labour Migration? A Panel Data Analysis Across EU Regions
AbstractThis paper deals with the determinants of labour out-migration from agriculture across 153 EU regions over the 1990-2008 period. The central aim is to shed light on the role played by CAP payments on this important adjustment process. Using static and dynamic panel data methods, we show that standard neo-classic drivers, like the relative income and the relative labour share, represented significant determinants of the inter-sectoral migration of the agricultural labour. Overall, CAP payments have contributed significantly to job creation in agriculture, although the magnitude of the economic effect is quite small. Moreover, Pillar I subsidies have exerted an effect from three to five times stronger than Pillar II payments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114597.
Date of creation: 2011
Date of revision:
Out-farm Migration; CAP Payments; Labour Markets; Panel Data Analysis; Agricultural and Food Policy; Labor and Human Capital; Q12; Q18; O13; J21; J43; J60;
Find related papers by JEL classification:
- 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
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-10-15 (Agricultural Economics)
- NEP-ALL-2011-10-15 (All new papers)
- NEP-LAB-2011-10-15 (Labour Economics)
- NEP-MIG-2011-10-15 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2003.
"Intersectoral Migration in Southeast Asia: Evidence from Indonesia, Thailand, and the Philippines,"
Journal of Agricultural and Applied Economics,
Southern Agricultural Economics Association, vol. 35.
- 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.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Dennis, Benjamin N. & Iscan, Talan B., 2007. "Productivity growth and agricultural out-migration in the United States," Structural Change and Economic Dynamics, Elsevier, vol. 18(1), pages 52-74, March.
- Roberto Esposti, 2007. "Regional Growth and Policies in the European Union: Does the Common Agricultural Policy Have a Counter-Treatment Effect?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 116-134.
- Besley, Timothy & Case, Anne, 2000.
"Unnatural Experiments? Estimating the Incidence of Endogenous Policies,"
Royal Economic Society, vol. 110(467), pages F672-94, November.
- Timothy Besley & Anne Case, 1994. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," NBER Working Papers 4956, National Bureau of Economic Research, Inc.
- Petrick, Martin & Zier, Patrick, 2010.
"Regional employment impacts of Common Agricultural Policy measures in Eastern Germany: A difference-in-differences approach,"
Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers
93158, Humboldt University Berlin, Department of Agricultural Economics.
- Martin Petrick & Patrick Zier, 2011. "Regional employment impacts of Common Agricultural Policy measures in Eastern Germany: a difference‐in‐differences approach," Agricultural Economics, International Association of Agricultural Economists, vol. 42(2), pages 183-193, 03.
- David Roodman, 2006.
"How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata,"
103, Center for Global Development.
- David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
- Joe Dewbre, 2006. "The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 393-408.
- Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
- Woldehanna, Tassew & Lansink, Alfons Oude & Peerlings, Jack, 2000. "Off-farm work decisions on Dutch cash crop farms and the 1992 and Agenda 2000 CAP reforms," Agricultural Economics, Blackwell, vol. 22(2), pages 163-171, March.
- Larson, Donald & Mundlak, Yair, 1997.
"On the Intersectoral Migration of Agricultural Labor,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 45(2), pages 295-319, January.
- Larson, Donald & Mundlak, Yair, 1995. "On the intersectoral migration of agricultural labor," Policy Research Working Paper Series 1425, The World Bank.
- Sven Anders & Johannes Harsche & Roland Herrmann & Klaus Salhofer, 2004. "Regional Income Effects of Producer Support under the CAP," Discussion Papers 012004, Technische Universität München, Environmental Economics and Agricultural Policy Group.
- Douarin, Elodie, 2008. "Do decoupled payments really encourage farmers to work more off farm? A micro-level analysis of incentives and preferences," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44024, European Association of Agricultural Economists.
- Mundlak, Yair, 1979. "Intersectoral factor mobility and agricultural growth:," Research reports 6, International Food Policy Research Institute (IFPRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.