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Jobs and Agricultural Policy : Impact of the Common Agricultural Policy on EU Agricultural Employment

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  • Garrone, M.
  • Olper, A.
  • Emmers, D.
  • Swinnen, J.

Abstract

This paper investigates the relationship between agricultural subsidies and the outflow of labor from agriculture. We use new and more representative subsidy indicators than have been used before and panel data from 215 EU regions over the period 2004-2014. The data allow to correct better for sample selection bias than previous empirical studies. We find that, on average, CAP subsidies reduce the outflow of labor from agriculture, but the effect is entirely due to decoupled payments and rural development payments. Coupled payments have no impact on reducing labor outflow from agriculture, i.e. on preserving farm employment. Acknowledgement :

Suggested Citation

  • Garrone, M. & Olper, A. & Emmers, D. & Swinnen, J., 2018. "Jobs and Agricultural Policy : Impact of the Common Agricultural Policy on EU Agricultural Employment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277489, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277489
    DOI: 10.22004/ag.econ.277489
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    More about this item

    Keywords

    Agricultural and Food Policy;

    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
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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