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Does the Common Agricultural Policy Reduce Farm Labour Migration? 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 149 EU regions over the 1990–2008 period. The central aim is to shed light on the role played by payments from the common agricultural policy (CAP) on this important adjustment process. Using static and dynamic panel data estimators, we show that standard neoclassical drivers, like relative income and the relative labour share, represent significant determinants of the intersectoral migration of agricultural labour. Overall, CAP payments contributed significantly to job creation in agriculture, although the magnitude of the economic effect was rather moderate. We also find that pillar I subsidies exerted an effect approximately two times greater than that of pillar II payments.

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Bibliographic Info

Paper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 133.

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Length: 25 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:eps:fmwppr:133

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References

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Citations

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Cited by:
  1. 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.
  2. Kaditi, Eleni, 2013. "The Impact of CAP Reforms on Farm Labour Structure," Working Papers 157914, Factor Markets, Centre for European Policy Studies.
  3. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2013. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," Working Papers 160742, Factor Markets, Centre for European Policy Studies.
  4. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2013. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," Factor Markets Working Papers 180, Centre for European Policy Studies.
  5. Olper, Alessandro & Raimondi, Valentina & Bertoni, Danilo & Cavicchioli, Daniele, 2013. "Patterns and Determinants of Off-Farm Migration: Transfer frictions and persistency of relative income gaps," Working Papers 144006, Factor Markets, Centre for European Policy Studies.
  6. Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU," Working Papers 155704, Factor Markets, Centre for European Policy Studies.
  7. Kaditi, Eleni, 2013. "The Impact of CAP Reforms on Farm Labour Structure," Factor Markets Working Papers 177, Centre for European Policy Studies.

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