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Structural changes and labour adjustments in rural Bulgaria

Author

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  • Mishev, Plamen Dimitrov
  • Ivanova, Nedka Momtscheva
  • Harizanova, Christina Stefanova

Abstract

The rural areas in Bulgaria cover more then 80% of the country territory and account for about 29% of the population. Their development depends strongly on agricultural sector. The paper examines structural changes in agriculture, labour market situation in rural areas and presents the main results of the survey performed in three region of Bulgaria. The study shows a substantial decline in the number of farm with economic size between 0,5 and 3 ESU and a stable increase in the number of large farms. Major factors having impact on farm restructuring are: improvements in economic situation, in particular the increase in real income, positive developments of land market, deterioration of age structure of rural population and the habits of rural population to keep some agricultural activity. An important development of subsistence and semi subsistence farms is observed indicating two opposite processes: a process of transforming of a small part of semi-subsistence into commercial farms or into higher economic size group and another part of them converged to subsistence farms. The number of subsistence farms with economic size 0,5 – 1 ESU also declined as the reduction is either due to reduction of farm activity or due to exit from the sector. The most important option for employment and source of income in villages studied is agriculture, but the earned income is much below the national average The most important factor having impact on a decision to start a job outside agriculture is “To ensure households leaving standards/ generate cash income”. Generally the respondents do not think that they will have possibility to start their self employed business outside agriculture in the next 5 years. Only 25% of them expect to stay in agriculture as nearly 50% of the commercial farms will keep operating and only 17% - 26% of small farms will remain in the sector

Suggested Citation

  • Mishev, Plamen Dimitrov & Ivanova, Nedka Momtscheva & Harizanova, Christina Stefanova, 2010. "Structural changes and labour adjustments in rural Bulgaria," 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia 95317, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa118:95317
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    File URL: http://purl.umn.edu/95317
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    References listed on IDEAS

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    1. Zusman, Pinhas, 1976. "The Incorporation and Measurement of Social Power in Economic Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(2), pages 447-462, June.
    2. Ian Hodge, 2007. "The Governance of Rural Land in a Liberalised World," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 409-432, September.
    3. Christine Schleupner & P. Michael Link, 2007. "Potential impacts on important bird habitats in Eiderstedt (Schleswig-Holstein) caused by agricultural land use changes," Working Papers FNU-138, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2007.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    rural development; farm restructuring; labour markets; Community/Rural/Urban Development; J21; R23;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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