The Impact of CAP Reforms on Farm Labour Structure
AbstractThe labour force engaged in the agricultural sector is declining over time, and one can observe the reallocation of labour from family members to hired workers. Using farm-level data, this paper analyses the on-farm labour structure in Greece and assesses the factors driving its evolution over the period 1990-2008. The impact of agricultural policies and farm characteristics is examined in a dynamic panel analysis. Family and hired labour are found to be substitutes rather than complements, while agricultural support measures appear to negatively affect demand for both family and hired labour. Decoupled payments and subsidies on crops are found to have a significant impact on both sources of labour, as well as subsidies for rural development that do not favour on-farm labour use. The paper also finds that structural labour adjustments are the result of farm characteristics, such as farm size and location. The results are robust to various estimation techniques and specifications.
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Bibliographic InfoPaper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 177.
Length: 18 pages
Date of creation: Aug 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-10-25 (Agricultural Economics)
- NEP-ALL-2013-10-25 (All new papers)
- NEP-LAB-2013-10-25 (Labour Economics)
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