The Reallocation of Agricultural Labour across Sectors: An Empirical Strategy for Micro Data
AbstractThis paper presents an empirical methodology for studying the reallocation of agricultural labour across sectors from micro data. Whereas different approaches have been employed in the literature to better understand the mobility of labour, looking at the determinants to exit farm employment and enter off-farm activities, the initial decision of individuals to work in agriculture, as opposed to other sectors, has often been neglected. The proposed methodology controls for the selectivity bias, which may arise in the presence of a non-random sample of the population, in this context those in agricultural employment, which would lead to biased and inconsistent estimates. A 3-step multivariate probit with two selection and one outcome equations constitutes the selected empirical approach to explore the determinants of farm labour to exit agriculture and switch occupational sector. The model can be used to take into account the different market and production structures across European member states on the allocation of agricultural labour and its adjustments.
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 Centre for European Policy Studies in its series Factor Markets Working Papers with number 157.
Length: 10 pages
Date of creation: Jun 2013
Date of revision:
This paper has been announced in the following NEP Reports:
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.:
- Florin P. Vadean & Matloob Piracha, 2009.
"Circular Migration or Permanent Return: What Determines Different Forms of Migration?,"
Studies in Economics
0912, Department of Economics, University of Kent.
- Vadean, Florin & Piracha, Matloob, 2009. "Circular Migration or Permanent Return: What Determines Different Forms of Migration?," IZA Discussion Papers 4287, Institute for the Study of Labor (IZA).
- A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, April.
- Pfeffer, Max J, 1989. "Part-time Farming and the Stability of Family Farms in the Federal Republic of Germany," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 16(4), pages 425-44.
- Huffman, Wallace, 1980.
"Farm and Off-Farm Work Decisions: The Role of Human Capital,"
Staff General Research Papers
10973, Iowa State University, Department of Economics.
- Huffman, Wallace E, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 14-23, February.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
- A. Kimhi, 1994. "Participation Of Farm Owners In Farm And Off-Farm Work Including The Option Of Full-Time Off-Farm Work," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 232-239.
- A Corsi & JL Findeis, 2000. "True state dependence and heterogeneity in off-farm labour participation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(2), pages 127-151, June.
- Luka Juvančič & Emil Erjavec, 2005.
"Intertemporal analysis of employment decisions on agricultural holdings in Slovenia,"
International Association of Agricultural Economists, vol. 33(2), pages 153-161, 09.
- Juvancic, Luka & Erjavec, Emil, 2003. "Intertemporal Analysis Of Employment Decisions On Agricultural Holdings In Slovenia," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25840, International Association of Agricultural Economists.
- 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.
- Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2012. "Labour Adjustments In Agriculture: Evidence From Romania," 132nd Seminar, October 25-27, 2012, Skopje, Republic of Macedonia 139503, European Association of Agricultural Economists.
- Stefan Bojnec & Liesbeth Dries, 2005. "Causes of Changes in Agricultural Employment in Slovenia: Evidence from Micro-data," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 399-416.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleni Kaditi).
If references are entirely missing, you can add them using this form.