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Labour adjustment in agriculture: Assessing the heterogeneity across transition countries

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  • Herzfeld, Thomas
  • Dries, Liesbeth
  • Glauben, Thomas

Abstract

A standard model of labour adjustment in times of economic transition assumes a constant impact of variables like sectoral income differences, unemployment or the relative size of the agricultural sector. This paper shows for a panel of 29 European and Asian transition countries that the standard model fails to take the heterogeneity of determinants of sectoral labour adjustment properly into account. A random coefficients model reveals quite heterogeneous influences of the intersectoral income ratio, the relative size of agricultural employment, the unemployment rate, and the general level of economic development on a measure of sectoral labour adjustment across transition countries. Moreover, for selected determinants the estimated coefficients show opposing signs.

Suggested Citation

  • Herzfeld, Thomas & Dries, Liesbeth & Glauben, Thomas, 2011. "Labour adjustment in agriculture: Assessing the heterogeneity across transition countries," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114540, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114540
    DOI: 10.22004/ag.econ.114540
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    Cited by:

    1. Fertö, Imre, 2014. "The Structural Transformation in Central and Eastern European Agriculture," CEI Working Paper Series 2014-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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