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Does family farming reduce rural unemployment?

Author

Listed:
  • David Wuepper
  • Stefan Wimmer
  • Johannes Sauer

Abstract

This article investigates the causal relationship between family farming and rural labour markets. To this end, we combine farm accountancy data and public labour market statistics at the district level (NUTS-3) for the years 2008–2013. While cross-sectional regressions reveal a strong and robust negative correlation between the share of family farm labour and unemployment rate in a region, fixed-effects panel data regressions suggest this is not causal. Instead, we find evidence that cultural differences in work ethic spuriously connect family farming with unemployment. Thus, supporting family farming to fight rural unemployment is not an effective strategy in Germany.

Suggested Citation

  • David Wuepper & Stefan Wimmer & Johannes Sauer, 2021. "Does family farming reduce rural unemployment?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 315-337.
    • Handle: RePEc:oup:erevae:v:48:y:2021:i:2:p:315-337.
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    File URL: http://hdl.handle.net/10.1093/erae/jbab002
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    Citations

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    Cited by:

    1. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 253-265.
    2. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2023. "An estimation of the informal economy in the agricultural sector in the EU‐15 from 1996 to 2019," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 406-447, March.
    3. Jakub Staniszewski & Łukasz Kryszak, 2022. "Do Structures Matter in the Process of Sustainable Intensification? A Case Study of Agriculture in the European Union Countries," Agriculture, MDPI, vol. 12(3), pages 1-19, February.
    4. Stefan Mann, 2021. "Synthesizing Knowledge about Structural Change in Agriculture: The Integration of Disciplines and Aggregation Levels," Agriculture, MDPI, vol. 11(7), pages 1-14, June.
    5. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2021. "Measuring the Immeasurable: The Evolution of the Size of Informal Economy in the Agricultural Sector in the EU-15 up to 2019," CESifo Working Paper Series 8937, CESifo.

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