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Does Common Agricultural Policy Reduce Farm Labour Migration? A Panel Data Analysis Across EU Regions

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  • Olper, Alessandro
  • Raimondi, Valentina
  • Cavicchioli, Daniele
  • Vigani, Mauro

Abstract

This 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.

Suggested Citation

  • Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, 2011. "Does Common Agricultural Policy Reduce Farm Labour Migration? A Panel Data Analysis Across EU Regions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114597, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114597
    DOI: 10.22004/ag.econ.114597
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    Cited by:

    1. Nicola GALLUZZO, 2016. "Role Of Financial Subsidies Allocated By The Common Agricultural Policy In Reducing Out Emigration In Italian Countryside," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 10(2), pages 50-63, December.
    2. Dries, Liesbeth & Ciaian, Pavel & Kancs, d’Artis, 2012. "Job creation and job destruction in EU agriculture," Food Policy, Elsevier, vol. 37(6), pages 600-608.
    3. Tocco,Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU," Factor Markets Working Papers 158, Centre for European Policy Studies.
    4. Olper, Alessandro & Raimondi, Valentina & Bertoni, Danilo & Cavicchioli, Daniele, 2013. "Patterns and Determinants of Off-Farm Migration: Transfer frictions and persistency of relative income gaps," Working papers 144006, Factor Markets, Centre for European Policy Studies.
    5. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2013. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," Working papers 160742, Factor Markets, Centre for European Policy Studies.
    6. Lillemets, Jüri & Fertő, Imre & Viira, Ants-Hannes, 2022. "The socioeconomic impacts of the CAP: Systematic literature review," Land Use Policy, Elsevier, vol. 114(C).
    7. Kaditi, Eleni A., 2013. "The Impact of CAP Reforms on Farm Labour Structure," Working papers 157914, Factor Markets, Centre for European Policy Studies.
    8. Francesco Mantino, 2017. "Employment Effects of the CAP in Italian Agriculture: Territorial Diversity and Policy Effectiveness," EuroChoices, The Agricultural Economics Society, vol. 16(3), pages 12-17, December.
    9. Zier, Patrick, 2013. "Econometric impact assessment of the Common Agricultural Policy in East German agriculture," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 71, number 71.
    10. Kaditi, Eleni, 2013. "The Impact of CAP Reforms on Farm Labour Structure," Factor Markets Working Papers 177, Centre for European Policy Studies.
    11. Bartolini, Fabio & Brunori, Gianluca & Coli, Alessandra & Landi, Chiara & Pacini, Barbara, 2015. "Assessing the Causal Effect of Decoupled Payments on farm labour in Tuscany Using Propensity Score Methods," 2015 Conference, August 9-14, 2015, Milan, Italy 211200, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Agricultural and Food Policy; Labor and Human Capital;

    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; Animal Welfare Policy
    • O13 - Economic Development, Innovation, 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, Vacancies, and Immigrant Workers - - - General

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