IDEAS home Printed from
   My bibliography  Save this paper

Did the CAP reform affect off-farm labour participation in Italian farms?


  • Corsi, Alessandro
  • Salvioni, Cristina


The process of change in the Common Agricultural Policy (CAP) from trade and market distorting measures to more neutral interventions has been long, but in this process the 2003 reform (the so-called Fischler reform) has been the most important step, leading to a more decoupled, and hence less market distorting, support (Oecd, 2004) and introducing the fully decoupled Single Farm Payment Scheme (SFP). In this paper, we estimate a model of operators’ off-farm labour participation from a panel of Italian COP farms drawn from the FADN. To this purpose we use a random effects probit model, thus controlling for unobserved heterogeneity. The results suggest that the effects of the reform on off-farm labour participation, if any, are weak. No variable directly related to the CAP reform is significant. These results are not in contrasts with the theoretical considerations, since the reform entails both wealth and substitution effects that tend to offset each other. Also, rigidities in the labour market tend to contrast adjustments to the changing conditions. Our results also suggest that changes in relative prices affect off-farm labour participation of farm operators, but that this effect depends on the labour intensity of the different crops. Therefore, the effects of the reform on off-farm labour participation can be due to these changes, but the role of the CAP reform in the changes in relative prices is uncertain, and out of the scope of this paper.

Suggested Citation

  • Corsi, Alessandro & Salvioni, Cristina, 2012. "Did the CAP reform affect off-farm labour participation in Italian farms?," 2012 First Congress, June 4-5, 2012, Trento, Italy 124098, Italian Association of Agricultural and Applied Economics (AIEAA).
  • Handle: RePEc:ags:aieacp:124098
    DOI: 10.22004/ag.econ.124098

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Raimondi, Valentina & Curzi, Daniele & Bertoni, Danilo & Olper, Alessandro, 2013. "Off-farm Labour Decision of Italian Farm Operators," Factor Markets Working Papers 173, Centre for European Policy Studies.
    2. Genius, Margarita, 2013. "Production and Off-Farm Employment Decisions of Greek and Hungarian Farmers in the Light of the Last CAP Refrom," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 14(2), pages 1-16.
    3. World Bank, . "Better Opportunities for All," World Bank Other Operational Studies, The World Bank, number 33545.

    More about this item


    Agricultural and Food Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:ags:aieacp:124098. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    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.

    We have no bibliographic references for this item. You can help adding them by using 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: AgEcon Search (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.