Subsidies and agricultural employment: The education channel
AbstractAgricultural employment in industrialized countries has been steadily decreasing despite important levels of farm subsidies. In this paper we provide a new explanation for this puzzle, namely the positive impact of subsidies on the education level of farmers’ children. If farmers are credit constrained, they may underinvest in their children’s education. By increasing farmers’ incomes, subsidies increase investment in education. If more educated children are less willing to become farmers, in the long term subsidies may lead to a reduction of labor supply in the agricultural sector. We provide both theoretical and empirical evidence supporting this argument. Keywords:
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 International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126776.
Date of creation: 2012
Date of revision:
Agricultural Employment; Structural change; Subsidies; Education; Credit Constraints; Agricultural and Food Policy; Labor and Human Capital;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-07-23 (Agricultural Economics)
- NEP-ALL-2012-07-23 (All new papers)
- NEP-LAB-2012-07-23 (Labour Economics)
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.:
- 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.
- Kimhi, Ayal & Bollman, Ray, 1999. "Family farm dynamics in Canada and Israel: the case of farm exits," Agricultural Economics, Blackwell, vol. 21(1), pages 69-79, August.
- 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.
- Stephan J. Goetz & David L. Debertin, 2001. "Why Farmers Quit: A County-Level Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1010-1023.
- Jeremy D. Foltz, 2004. "Entry, Exit, and Farm Size: Assessing an Experiment in Dairy Price Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 594-604.
- Nigel Key & Michael J. Roberts, 2006. "Government Payments and Farm Business Survival," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 382-392.
- 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.
- Swinnen, Johan F.M. & Van Herck, Kristine & Vandemoortele, Thijs, 2012.
"The Experience Economy as the Future for European Agriculture and Food?,"
Bio-based and Applied Economics Journal,
Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.
- Jo Swinnen & Kristine Van Herck & Thijs Vandemoortele, 2012. "The Experience Economy as the Future for European Agriculture and Food?," LICOS Discussion Papers 31312, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.