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

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  • 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.

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Paper 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 152326.

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Date of creation: Jun 2013
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Handle: RePEc:ags:iatr13:152326

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

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Cited by:
  1. 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.
  2. 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.

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