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Economic effects of the Common Agricultural Policy on employment in Austria

Author

Listed:
  • Neuwirth, Julia
  • Ortner, Karl M.
  • Wagner, Klaus

Abstract

The paper estimates the effects of public payments in agriculture on employment in two ways. A partial analysis of FADN-data concentrating on the agricultural sector shows a preservation of 45,000 to 57,000 jobs for the year 2004 in agriculture because of public payments but without taking into account effects of and interdependencies to other sectors. As a second step an input-output analysis estimates the employment effects of a hypothetical redistribution of agricultural subsidies to other sectors. The results show a decrease of 45,000 work places in the primary sector and an increase of 12,000 jobs in other sectors. But in all a decrease of 33,000 work places would be the result under the assumption of a constant volume of overall production. Due to the low income level in the primary sector public payments for agriculture seem to be a relatively cheep possibility to reach the highest possible level of employment with the side effects of keeping settlement in peripheral regions and maintaining the landscape.

Suggested Citation

  • Neuwirth, Julia & Ortner, Karl M. & Wagner, Klaus, 2010. "Economic effects of the Common Agricultural Policy on employment in Austria," Rural Areas and Development, European Rural Development Network (ERDN), vol. 7, pages 1-11.
    • Handle: RePEc:ags:erdnra:139803
    DOI: 10.22004/ag.econ.139803
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    File URL: https://ageconsearch.umn.edu/record/139803/files/2010-RAD-07-16-ORTNER_213-223.pdf
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    Cited by:

    1. 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.

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