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The Impact of CAP Reforms on Farm Labour Structure

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  • Kaditi, Eleni

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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  • Kaditi, Eleni, 2013. "The Impact of CAP Reforms on Farm Labour Structure," Factor Markets Working Papers 177, Centre for European Policy Studies.
    • Handle: RePEc:eps:fmwppr:177
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    References listed on IDEAS

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    Cited by:

    1. Francesco Mantino, 2017. "Employment Effects of the CAP in Italian Agriculture: Territorial Diversity and Policy Effectiveness," EuroChoices, The Agricultural Economics Society, vol. 16(3), pages 12-17, December.
    2. Apostolos G. Papadopoulos, 2015. "The Impact of the CAP on Agriculture and Rural Areas of EU Member States," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 4(1), pages 22-53, April.
    3. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.
    4. Agnė Žičkienė & Rasa Melnikienė & Mangirdas Morkūnas & Artiom Volkov, 2022. "CAP Direct Payments and Economic Resilience of Agriculture: Impact Assessment," Sustainability, MDPI, vol. 14(17), pages 1-24, August.

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