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The Reallocation of Agricultural Labour across Sectors: An Empirical Strategy for Micro Data

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  • Tocco, Barbara
  • Bailey, Alastair
  • Davidova, Sophia

Abstract

This paper presents an empirical methodology for studying the reallocation of agricultural labour across sectors from micro data. Whereas different approaches have been employed in the literature to better understand the mobility of labour, looking at the determinants to exit farm employment and enter off-farm activities, the initial decision of individuals to work in agriculture, as opposed to other sectors, has often been neglected. The proposed methodology controls for the selectivity bias, which may arise in the presence of a non-random sample of the population, in this context those in agricultural employment, which would lead to biased and inconsistent estimates. A 3-step multivariate probit with two selection and one outcome equations constitutes the selected empirical approach to explore the determinants of farm labour to exit agriculture and switch occupational sector. The model can be used to take into account the different market and production structures across European member states on the allocation of agricultural labour and its adjustments.

Suggested Citation

  • Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "The Reallocation of Agricultural Labour across Sectors: An Empirical Strategy for Micro Data," Working Papers 155703, Factor Markets, Centre for European Policy Studies.
  • Handle: RePEc:ags:famawp:155703
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    References listed on IDEAS

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    1. H Ingham & M Ingham, 2005. "Labour flows into and out of Polish agriculture: a micro-level analysis," Working Papers 563462, Lancaster University Management School, Economics Department.
    2. Huffman, Wallace E, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 14-23, February.
    3. Stefan Bojnec & Liesbeth Dries, 2005. "Causes of Changes in Agricultural Employment in Slovenia: Evidence from Micro-data," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 399-416.
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    7. A Corsi & JL Findeis, 2000. "True state dependence and heterogeneity in off-farm labour participation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(2), pages 127-151, June.
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    12. Florin P. Vadean & Matloob Piracha, 2009. "Circular Migration or Permanent Return: What Determines Different Forms of Migration?," Studies in Economics 0912, School of Economics, University of Kent.
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    Cited by:

    1. Czy┼╝ewski, Bazyli & Poczta-Wajda, Agnieszka, 2016. "Effects of Policy and Market on Relative Income Deprivation of Agricultural Labour," 160th Seminar, December 1-2, 2016, Warsaw, Poland 249759, European Association of Agricultural Economists.

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    Keywords

    Farm Labour; Reallocation; Micro-Data; Labor and Human Capital;

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