Advanced Search
MyIDEAS: Login

Reallocation of Agricultural Labor and Farm Subsidies: Evidence From the EU Regions

Contents:

Author Info

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

Abstract

The paper deals with the determinants of labour out-migration from agriculture across 149 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 estimators, we show that standard neo-classic drivers, like the relative income and the relative labour share, represent significant determinants of the inter-sectoral migration of agricultural labour. Overall, CAP payments contributed significantly to job creation in agriculture, although the magnitude of the economic effect was quite moderate. We also found that Pillar I subsidies exerted an effect approximately two times greater than that of Pillar II payments

Download Info

If 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.
File URL: http://purl.umn.edu/126645
Download Restriction: no

Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126645.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:ags:iaae12:126645

Contact details of provider:
Email:
Web page: http://www.iaae-agecon.org/
More information through EDIRC

Related research

Keywords: Out-farm Migration; Labour Markets; CAP Payments; Panel Data Analysis.; Farm Management; Q12; Q18; O13; J21; J43; J60.;

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. 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.
  2. Becker, Sascha O. & Egger, Peter H. & von Ehrlich, Maximilian, 2012. "Too much of a good thing? On the growth effects of the EU's regional policy," European Economic Review, Elsevier, vol. 56(4), pages 648-668.
  3. 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.
  4. Stephan J. Goetz & David L. Debertin, 1996. "Rural Population Decline in the 1980s: Impacts of Farm Structure and Federal Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 517-529.
  5. Sergio H. Lence & Ashok K. Mishra, 2003. "The Impacts of Different Farm Programs on Cash Rents," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 753-761.
  6. Michalek, Jerzy & Ciaian, Pavel & Kancs, d'Artis & Gomez y Paloma, Sergio, 2011. "Distributional Effects of CAP Subsidies: Micro Evidence from the EU," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 102978, Agricultural and Applied Economics Association.
  7. Ky–sti Pietola & Minna V”re & Alfons Oude Lansink, 2003. "Timing and type of exit from farming: farmers' early retirement programmes in Finland," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 99-116, March.
  8. Benjamin, Catherine & Kimhi, Ayal, 2003. "Farm Work, Off-Farm Work, And Hired Farm Labor: Estimating A Discrete-Choice Model Of French Farm Couples' Labor Decisions," Discussion Papers 14990, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  9. Salvioni, Cristina & Sciulli, Dario, 2011. "Impact of Rural Development Policy and Less Favored Areas Scheme: A Difference in Difference Matching Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115988, European Association of Agricultural Economists.
  10. 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.
  11. Pavel Ciaian & d’Artis Kancs, 2012. "The Capitalization of Area Payments into Farmland Rents: Micro Evidence from the New EU Member States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(4), pages 517-540, December.
  12. 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.
  13. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  14. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
  15. 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.
  16. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
  17. Joakim Gullstrand & Kerem Tezic, 2008. "Who leaves after entering the primary sector? Evidence from Swedish micro-level data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(1), pages 1-28, March.
  18. Esposti, Roberto, 2011. "Evaluating the CAP Reform as a multiple treatment effect: evidence from Italian farms," 122nd Seminar, February 17-18, 2011, Ancona, Italy 100216, European Association of Agricultural Economists.
  19. David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers 103, Center for Global Development.
  20. 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.
  21. 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.
  22. Pavel Ciaian & d'Artis Kancs & Jerzy Michalek, 2011. "SPS Capitalization into Land Value : Generalized Propensity Score Evidence from the EU," LICOS Discussion Papers 29311, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  23. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(1), pages 79-101, March.
  24. 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.
  25. Becker, Sascha & Egger, Peter H & Fenge, Robert & von, Ehrlich Maximilian, 2008. "Going NUTS: The Effect of EU Structural Funds on Regional Performance," Stirling Economics Discussion Papers 2008-27, University of Stirling, Division of Economics.
  26. Dewbre, Joe & Mishra, Ashok K., 2007. "Impact of Program Payments on Time Allocation and Farm Household Income," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(03), December.
  27. Mundlak, Yair, 1979. "Intersectoral factor mobility and agricultural growth:," Research reports 6, International Food Policy Research Institute (IFPRI).
  28. Barrett E. Kirwan, 2009. "The Incidence of U.S. Agricultural Subsidies on Farmland Rental Rates," Journal of Political Economy, University of Chicago Press, vol. 117(1), pages 138-164, 02.
  29. Barry K. Goodwin & Matthew T. Holt, 2002. "Parametric and Semiparametric Modeling of the Off-Farm Labor Supply of Agrarian Households in Transition Bulgaria," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 184-209.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:126645

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.