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Farm Subsidies and Agricultural Employment: The Education Channel

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  • Berlinschi, Ruxanda
  • Van Herck, Kristine

Abstract

Agricultural employment in industrialized countries has been steadily decreasing despite important levels of farm subsidies. We argue that one explanation to this puzzle is the positive impact of subsidies on the education levels of farmers’ children. If farmers are credit constrained, they may underinvest in their children’s education. By increasing farmers’ revenues, subsidies increase investment in education. If more educated children are less willing to become farmers, one long term effect of subsidies is to reduce labor supply in the agricultural sector. We provide a theoretical model and some empirical evidence supporting this argument.
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Suggested Citation

  • Berlinschi, Ruxanda & Van Herck, Kristine, 2011. "Farm Subsidies and Agricultural Employment: The Education Channel," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114248, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114248
    DOI: 10.22004/ag.econ.114248
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    Cited by:

    1. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.
    2. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, "undated". "Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel data analysis across EU regions," Working papers 128790, Factor Markets, Centre for European Policy Studies.
    3. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, 2012. "Reallocation of Agricultural Labor and Farm Subsidies: Evidence From the EU Regions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126645, International Association of Agricultural Economists.
    4. repec:lic:licosd:29311 is not listed on IDEAS

    More about this item

    Keywords

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    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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