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The Impact of CAP Reforms on Farm Labour Structure

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  • Kaditi, Eleni
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    Abstract

    The 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 Info

    Paper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 177.

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    Length: 18 pages
    Date of creation: Aug 2013
    Date of revision:
    Handle: RePEc:eps:fmwppr:177

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    7. Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(3-4), pages 443-58.
    8. Olper,Alessandro, & Raimondi,Valentina & Cavicchioli,Daniele & Vigani,Mauro, 2012. "Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel data analysis across EU regions," Factor Markets Working Papers 133, Centre for European Policy Studies.
    9. Pierre Dupraz & Laure Latruffe & Stefan Mann, 2010. "Trends in family, hired and contract labour use on French and Swiss crop farms: The role of agricultural policies," Working Papers SMART - LERECO 201016, INRA UMR SMART.
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    13. Hisham S. El-Osta & Ashok K. Mishra & Mitchell J. Morehart, 2008. "Off-Farm Labor Participation Decisions of Married Farm Couples and the Role of Government Payments," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 311-332.
    14. Michel Blanc & Eric Cahuzac & Bernard Elyakime & Gabriel Tahar, 2008. "Demand for on-farm permanent hired labour on family holdings," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(4), pages 493-518, December.
    15. Jambor, Attila & Harvey, David R., 2010. "CAP Reform Options: A Challenge for Analysis and Synthesis," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91719, Agricultural Economics Society.
    16. 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.
    17. 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.
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