IDEAS home Printed from https://ideas.repec.org/p/ags/eaa114/61355.html
   My bibliography  Save this paper

CAP effects on labour use in agriculture: Evidence from alternative dynamic panel data models

Author

Listed:
  • Petrick, Martin
  • Zier, Patrick

Abstract

Our aim is to investigate whether the direct payments and rural development measures of the EU’s Common Agricultural Policy (CAP) do make jobs in agriculture safer. We work with a dynamic labour demand equation that is augmented by the full set of policy instruments of the CAP. It is estimated on a unique regional panel dataset of three East German states for the period 1999-2006. We present results for three consistent estimators which differ in how they eliminate the fixed effects and how they instrument the lagged dependent variable, including estimators due to Arellano and Bond, Blundell and Bond, and a corrected least-squares dummy variable estimator due to Kiviet and Bruno. Our results suggest that there were few desirable effects on job maintenance or job creation in agriculture. While there is some indication that investment subsidies have halted labour shedding on farms, the introduction of the fully decoupled Single Farm Payment has likely contributed to significant job losses.

Suggested Citation

  • Petrick, Martin & Zier, Patrick, 2010. "CAP effects on labour use in agriculture: Evidence from alternative dynamic panel data models," 114th Seminar, April 15-16, 2010, Berlin, Germany 61355, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa114:61355
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/61355
    Download Restriction: no

    More about this item

    Keywords

    Agricultural employment; Dynamic panel data models; Common Agricultural Policy; East Germany; Agricultural and Food Policy; Farm Management; Land Economics/Use; Q18; J43; C23;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:eaa114:61355. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/eaaeeea.html .

    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 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.

    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.