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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.

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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 114597.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114597

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Keywords: Out-farm Migration; CAP Payments; Labour Markets; Panel Data Analysis; Agricultural and Food Policy; Labor and Human Capital; Q12; Q18; O13; J21; J43; J60;

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Cited by:
  1. Zier, Patrick, 2013. "Econometric impact assessment of the Common Agricultural Policy in East German agriculture," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 71, number 71.
  2. Liesbeth Dries & Pavel Ciaian & d’Artis Kancs, 2012. "Job Creation and Job Destruction in EU Agriculture," LICOS Discussion Papers 31512, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

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