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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
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    File URL: http://purl.umn.edu/114540
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    References listed on IDEAS

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    3. Dries, Liesbeth & Swinnen, Johan F. M., 2002. "Institutional Reform and Labor Reallocation During Transition: Theory Evidence From Polish Agriculture," World Development, Elsevier, vol. 30(3), pages 457-474, March.
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    5. Raiser, Martin & Schaffer, Mark & Schuchhardt, Johannes, 2004. "Benchmarking structural change in transition," Structural Change and Economic Dynamics, Elsevier, vol. 15(1), pages 47-81, March.
    6. Butzer, Rita & Larson, Donald F & Mundlak, Yair, 2002. "Intersectoral Migration in Venezuela," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 227-248, January.
    7. Sabine Bernabè & Marco Stampini, 2009. "Labour mobility during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(2), pages 377-409, April.
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    12. Sabine Bernab? & Marco Stampini, 2008. "Labour mobility during transition: evidence from Georgia," LICOS Discussion Papers 20608, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    13. Johan F. M. Swinnen, 1999. "The political economy of land reform choices in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 637-664, November.
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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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    Keywords

    Labor and Human Capital;

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