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The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States

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

Abstract

This paper examines the determinants of exit from agriculture under the implementation of CAP payments in four selected EU countries (France, Hungary, Italy and Poland) in the period 2005-08. The study employs micro-data from the European Union Labour Force Survey and regional data from the Farm Accountancy Data Network. We differentiate among the different measures of farm payments, looking at the individual impact of Pillar 1 instruments, i.e. coupled and decoupled payments, and at those in Pillar 2, targeted at rural development. The main results suggest that total subsidies at the regional level are negatively associated with the out-farm migration of agricultural workers in the two New member states, Hungary and Poland, so that the CAP would seem to hinder the exit of labour from agriculture. Conversely, the non-significant results for the ‘old’ member states may be interpreted as the result of opposing effects of coupled payments and rural development support. The diverse impact of CAP on the likelihood of leaving agriculture in the four countries reflects the heterogeneity across European member states, due to different market and production structures, which does not allow a common and simple generalisation of the effect of the CAP on labour allocation.

Suggested Citation

  • Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2013. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," Working papers 160742, Factor Markets, Centre for European Policy Studies.
  • Handle: RePEc:ags:famawp:160742
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2016. "Part-Time Farming in Italy: Does Farm Size Really Matter?," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236291, Agricultural Economics Society.
    2. Tocco, Barbara & Bailey, Alastair & Davidova, Sophia & Raimondi, Valentina, 2015. "Women and Part-Time Farming: Understanding Labor Supply Decisions in Italian Farm Households," 2015 Conference, August 9-14, 2015, Milan, Italy 211932, International Association of Agricultural Economists.
    3. repec:gam:jsusta:v:11:y:2019:i:12:p:3462-:d:242522 is not listed on IDEAS
    4. Davidova, Sophia & Hennessy, Thia & Thomson, Ken, 2016. "Rural Jobs and the CAP: Spitting into the Wind?," 160th Seminar, December 1-2, 2016, Warsaw, Poland 249794, European Association of Agricultural Economists.
    5. Gecaj, Merita & Shahu, Edmira Ozuni & Imami, Drini & Skreli, Engjell & Jambor, Attila, 2018. "Analysing the impact of subsidies in the Albanian agriculture sector – A comparative approach," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271964, European Association of Agricultural Economists.
    6. Nicola Galluzzo, 2016. "Role Of Financial Subsidies Allocated By The Cap And Out Emigration In Romanian Rural Areas," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 218-224, June.
    7. repec:rrs:journl:v:10:y:2016:i:2:p:50-63 is not listed on IDEAS
    8. repec:ags:stagec:276086 is not listed on IDEAS

    More about this item

    Keywords

    Labor and Human Capital;

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • 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

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