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Determinants To Leave Agriculture And Change Occupational Sector: Evidence From An Enlarged Eu

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

Abstract

The objective of this paper is to explore the determinants to leave agriculture and change occupational sector. We adopt a 3-step multivariate probit where we control for selection bias at two stages in the decisions to work and, at a later stage, exit agriculture. The analysis is based on the European Union Labour Force Survey data expanded with additional regional indicators. The main results suggest that younger individuals are more likely to leave farming activities, although the largest outflows of agricultural labour are mainly associated with the retirement of people. Self-employed and family workers are generally less likely to leave agriculture and those with low levels of educations are found to be significantly constrained in entering the non-farm economy. Moreover, labour market conditions at the regional level do matter for switching occupational sector. Differences in the results among the selected NMS and the EU-15 can be explained by the diverse production structures, suggesting different capacities to release and absorb labour.
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Suggested Citation

  • Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "Determinants To Leave Agriculture And Change Occupational Sector: Evidence From An Enlarged Eu," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152325, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatr13:152325
    DOI: 10.22004/ag.econ.152325
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    Cited by:

    1. Sadowski, Arkadiusz & Wojcieszak-Zbierska, Monika Małgorzata & Beba, Patrycja, 2021. "Territorial differences in agricultural investments co-financed by the European Union in Poland," Land Use Policy, Elsevier, vol. 100(C).
    2. Maria Carmela Macrì & Stefano Orsini, 2024. "Policy Instruments to Improve Foreign Workforce’s Position and Social Sustainability of the Agriculture in Italy," Sustainability, MDPI, vol. 16(12), pages 1-14, June.
    3. Bogusz, Małgorzata & Wojcieszak-Zbierska, Monika, 2020. "Multipurpose Rural Development in Selected European Union Countries (Examples of Implemented Projects)," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(3).
    4. Ngadi Ngadi & Andy Ahmad Zaelany & Ade Latifa & Dewi Harfina & Devi Asiati & Bayu Setiawan & Fitranita Ibnu & Triyono Triyono & Zanterman Rajagukguk, 2023. "Challenge of Agriculture Development in Indonesia: Rural Youth Mobility and Aging Workers in Agriculture Sector," Sustainability, MDPI, vol. 15(2), pages 1-15, January.
    5. Karol Pogorzelski, 2014. "Agricultural Development and Structural Change," IBS Policy Papers 5/2014, Instytut Badan Strukturalnych.
    6. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, "undated". "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 169090, European Association of Agricultural Economists.
    7. Lukasz SATOLA & Tomasz WOJEWODZIC & Wojciech SROKA, 2018. "Barriers to exit encountered by small farms in light of the theory of new institutional economics," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(6), pages 277-290.

    More about this item

    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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