IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i14p5518-d381893.html
   My bibliography  Save this article

Employment and Gross Value Added in Agriculture Versus Other Sectors of the European Union Economy

Author

Listed:
  • Włodzimierz Kołodziejczak

    (Department of Finance and Accounting, Faculty of Economics and Social Sciences, Poznan University of Life Sciences, Wojska Polskiego 28, 60-637 Poznan, Poland)

Abstract

The aim of the paper is to recognize the level of employment and gross value added (GVA) in agriculture in relation to the other sectors of the European Union economy. The following research tasks were formulated: analysis of employment levels and GVA in the sectors of economy in 2000 and 2018 as well as the relationship between employment and GVA, assessment of GVA per 1 person employed in the investigated sectors and its changes in the analysed years, and assessment of the scale of surplus employment in agriculture assuming that GVA per 1 person employed in this sector would be equal to the average level reached in the industry and the services sectors. Comparative analysis and the deduction method were used in the study. Correlation coefficients between the level of employment in individual sectors and GVA per 1 person employed in the time series covering the years 2000–2008 were also calculated. A new measure of the “goal” of employment reduction in agriculture has been proposed, related to the measurement of the distance between agriculture and other sectors in terms of GVA generated per 1 employed—the Excess Employment Rate In The Agricultural Sector (EERAS). The research was based on EUROSTAT data from the years of 2000 and 2018. The process of changes in the sectoral structure of employment will probably be determined by the growth rate of demand for services, structural adjustment referring to matching the characteristics of the agricultural population to the demand for labour force in the services sector and the pace of structural transformations in rural areas. Rationalisation of employment levels in agriculture promotes improvement of its economic and social sustainability. Instruments based on financial transfers from nonagricultural sectors to agriculture should play a secondary role, since they are a burden to more efficient sectors, and in the long term, they may hinder reduction of employment in agriculture. However, due to the inevitable differences in productivity observed between agriculture and the nonagricultural sectors, at a technologically, economically, ecologically and socially justified level of employment in agriculture, transfers of the surplus generated in the secondary and tertiary sectors need at least to reduce, if not eliminate, economic consequences of these differences.

Suggested Citation

  • Włodzimierz Kołodziejczak, 2020. "Employment and Gross Value Added in Agriculture Versus Other Sectors of the European Union Economy," Sustainability, MDPI, vol. 12(14), pages 1-24, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5518-:d:381893
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/14/5518/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/14/5518/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bazyli Czyżewski & Andrzej Czyżewski & Łukasz Kryszak, 2019. "The Market Treadmill Against Sustainable Income of European Farmers: How the CAP Has Struggled with Cochrane’s Curse," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    2. William T. Dickens & Kevin Lang, 1992. "Labor Market Segmentation Theory: Reconsidering the Evidence," NBER Working Papers 4087, National Bureau of Economic Research, Inc.
    3. Weiss, Andrew W, 1980. "Job Queues and Layoffs in Labor Markets with Flexible Wages," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 526-538, June.
    4. Czyżewski, Bazyli & Kłodowska, Małgorzata & Matuszczak, Anna & Matuszewska, Adrianna & Śmidoda, Dariusz, 2018. "Social Sustainab ility in Agricultural Farms with Selected Types of Production in European Union countries," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2018(4).
    5. Tille, Cédric & van Wincoop, Eric, 2010. "International capital flows," Journal of International Economics, Elsevier, vol. 80(2), pages 157-175, March.
    6. Reinhardt, Dennis & Ricci, Luca Antonio & Tressel, Thierry, 2013. "International capital flows and development: Financial openness matters," Journal of International Economics, Elsevier, vol. 91(2), pages 235-251.
    7. Rembisz, Włodzimierz, 2016. "Relacje wynagrodzenia i wydajności czynnika pracy w rolnictwie na tle gospodarki narodowej i jej sektorów w Polsce w okresie 2005-2012," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 2(171).
    8. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    9. Kaufman, Roger T., 1988. "An international comparison of Okun's laws," Journal of Comparative Economics, Elsevier, vol. 12(2), pages 182-203, June.
    10. Dwyer, Janet, 2013. "Transformation for sustainable agriculture: what role for the second Pillar of CAP?," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(1), pages 1-19, April.
    11. Kugler, Maurice & Rapoport, Hillel, 2007. "International labor and capital flows: Complements or substitutes?," Economics Letters, Elsevier, vol. 94(2), pages 155-162, February.
    12. Allan G. B. Fisher, 1939. "Production, Primary, Secondary And Tertiary," The Economic Record, The Economic Society of Australia, vol. 15(1), pages 24-38, June.
    13. Marta Guth & Katarzyna Smędzik-Ambroży & Bazyli Czyżewski & Sebastian Stępień, 2020. "The Economic Sustainability of Farms under Common Agricultural Policy in the European Union Countries," Agriculture, MDPI, vol. 10(2), pages 1-20, January.
    14. Ellen R. Rissman, 1986. "What is the natural rate of unemployment?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 10(Sep), pages 3-17.
    15. Pissarides, Christopher A, 1988. "The Search Equilibrium Approach to Fluctuations in Employment," American Economic Review, American Economic Association, vol. 78(2), pages 363-368, May.
    16. Włodzimierz Kołodziejczak & Feliks Wysocki, 2013. "Identyfikacja charakteru bezrobocia w Polsce w latach 2006-2009," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 29-52.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michał Borychowski & Sebastian Stępień & Jan Polcyn & Aleksandra Tošović-Stevanović & Dragan Ćalović & Goran Lalić & Milena Žuža, 2020. "Socio-Economic Determinants of Small Family Farms’ Resilience in Selected Central and Eastern European Countries," Sustainability, MDPI, vol. 12(24), pages 1-30, December.
    2. Du Caju, Philip & Fuss, Catherine & Wintr, Ladislav, 2009. "Understanding sectoral differences in downward real wage rigidity: workforce composition, institutions, technology and competition," Working Paper Series 1006, European Central Bank.
    3. Mahmood Araï & Gérard Ballot & Ali Skalli, 1996. "Différentiels intersectoriels de salaire et caractéristiques des employeurs en France," Économie et Statistique, Programme National Persée, vol. 299(1), pages 37-58.
    4. Sabrina T. Howell & J. David Brown, 2020. "Do Cash Windfalls Affect Wages? Evidence from R&D Grants to Small Firms," Working Papers 20-06, Center for Economic Studies, U.S. Census Bureau.
    5. Elias Dinopoulos & Laixun Zhao, 2007. "Child Labor and Globalization," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 553-579.
    6. Adama Zerbo, 2018. "Essai d'une nouvelle représentation macroéconomique du marché du travail," Documents de travail 178, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    7. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 2000. "Working hard for the money? Efficiency wages and worker effort," Journal of Economic Psychology, Elsevier, vol. 21(4), pages 351-385, August.
    8. Yim, Hyejin & Katare, Bhagyashree & Cuffey, Joel, 2022. "Does Increasing Minimum Wage Impact Service Quality? Evidence from Restaurant Food Safety Inspections," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322411, Agricultural and Applied Economics Association.
    9. Veronique Genre & Karsten Kohn & Daphne Momferatou, 2011. "Understanding inter-industry wage structures in the euro area," Applied Economics, Taylor & Francis Journals, vol. 43(11), pages 1299-1313.
    10. P R Agénor, 2005. "The Analytics of Segmented Labor Markets," Centre for Growth and Business Cycle Research Discussion Paper Series 52, Economics, The University of Manchester.
    11. Bai, Peiwen & Cheng, Wenli, 2020. "Relative earnings and firm performance: Evidence from publicly-listed firms in China, 2005–2012," International Review of Economics & Finance, Elsevier, vol. 66(C), pages 279-290.
    12. Kevin Lang, 2020. "Effort and wages: Evidence from the payroll tax," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(1), pages 108-139, February.
    13. Campbell, Carl M., 2014. "The formation of wage expectations in the effort and quit decisions of workers," Economic Modelling, Elsevier, vol. 42(C), pages 313-322.
    14. Marta Guth & Katarzyna Smędzik-Ambroży & Bazyli Czyżewski & Sebastian Stępień, 2020. "The Economic Sustainability of Farms under Common Agricultural Policy in the European Union Countries," Agriculture, MDPI, vol. 10(2), pages 1-20, January.
    15. Carlo Altavilla & Miguel Boucinha & José-Luis Peydró & Frank Smets, 2019. "Banking Supervision, Monetary Policy and Risk-Taking: Big Data Evidence from 15 Credit Registers," Working Papers 1137, Barcelona School of Economics.
    16. Jed Armstrong & Miles Parker, 2016. "How wages are set: evidence from a large survey of firms," Reserve Bank of New Zealand Discussion Paper Series DP2016/03, Reserve Bank of New Zealand.
    17. Milo Bianchi, 2010. "Credit constraints, entrepreneurial talent, and economic development," Small Business Economics, Springer, vol. 34(1), pages 93-104, January.
    18. Ahrens, Steffen & Pirschel, Inske & Snower, Dennis J., 2014. "A theory of wage adjustment under loss aversion," Kiel Working Papers 1977, Kiel Institute for the World Economy (IfW Kiel).
    19. Tetteh, Rebecca & Mohammed, Safura & Ahmed Azumah, Ayisha, 2017. "What is the effect of wages and supervision on productivity? The perspective of Sunyani Technical University staff," MPRA Paper 81473, University Library of Munich, Germany.
    20. Jan Morten Dyrstad, 2015. "Resource curse avoidance: Governmental intervention and wage formation in the Norwegian petroleum sector," Working Paper Series 16715, Department of Economics, Norwegian University of Science and Technology.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5518-:d:381893. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.