Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU
AbstractThe objective of this paper is to explore the determinants to leave agriculture and change occupational sector. We adopt a 3-step multivariate probit where we control for selection bias at two stages in the decisions to work and, at a later stage, exit agriculture. The analysis is based on the European Union Labour Force Survey data expanded with additional regional indicators. The main results suggest that younger individuals are more likely to leave farming activities, although the largest outflows of agricultural labour are mainly associated with the retirement of people. Self-employed and family workers are generally less likely to leave agriculture and those with low levels of educations are found to be significantly constrained in entering the non-farm economy. Moreover, labour market conditions at the regional level do matter for switching occupational sector. Differences in the results among the selected NMS and the EU-15 can be explained by the diverse production structures, suggesting different capacities to release and absorb labour.
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Bibliographic InfoPaper provided by International Agricultural Trade Research Consortium in its series Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain with number 152324.
Date of creation: Jun 2013
Date of revision:
Agricultural Employment; Labour mobility; Sample Selection Bias; Agricultural and Food Policy; Labor and Human Capital; Research Methods/ Statistical Methods; J24; J43; J62; Q12;
Other versions of this item:
- 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.
- Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "Determinants To Leave Agriculture And Change Occupational Sector: Evidence From An Enlarged Eu," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152325, International Agricultural Trade Research Consortium.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-08-16 (Agricultural Economics)
- NEP-ALL-2013-08-16 (All new papers)
- NEP-EUR-2013-08-16 (Microeconomic European Issues)
- NEP-LAB-2013-08-16 (Labour Economics)
- NEP-SPO-2013-08-16 (Sports & Economics)
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