Supply and Demand Side Limitations Affecting the Structure of Agriculture and the Rural Economy
This paper criticises the neo-classical assumptions of perfect factor markets and of complete information, which constitute central elements in labour market theory. Based on a literature review and on economic reports from transition economies, as well as developing countries and more advanced economies, this deliverable focuses on the structural impediments and imperfections that often characterise rural labour markets and that may prevent an efficient allocation of labour. According to empirical studies, transactions costs and rigidities hinder the well-functioning of labour markets and constrain labour adjustments. The paper attempts to classify the various limitations of rural labour markets from both the supply and demand side, although the distinction is not always clear-cut as some problems occur on both sides. The identification of these issues is extremely important as it allows us to highlight the inefficiencies and the failures in labour markets and to understand their impact on labour allocation. In this context, market intervention is desirable and the paper provides particular support for rural development policies such as investments in human capital. Lastly, labour institutions can play a key role in promoting the efficient functioning of labour markets, and thus it is fundamental that they are well established.
|Date of creation:|
|Contact details of provider:|| Postal: Place du Congrès, B-1000 Bruxelles|
Phone: (+322) 229-39-11
Fax: (+322) 229-39-71
Web page: http://www.ceps.eu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Catherine Benjamin & Ayal Kimhi, 2006.
"Farm work, off-farm work, and hired farm labour: estimating a discrete-choice model of French farm couples' labour decisions,"
European Review of Agricultural Economics,
Foundation for the European Review of Agricultural Economics, vol. 33(2), pages 149-171, June.
- Benjamin, Catherine & Kimhi, Ayal, 2003. "Farm Work, Off-Farm Work, And Hired Farm Labor: Estimating A Discrete-Choice Model Of French Farm Couples' Labor Decisions," 2003 Annual meeting, July 27-30, Montreal, Canada 22150, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Benjamin, Catherine & Kimhi, Ayal, 2003. "Farm Work, Off-Farm Work, And Hired Farm Labor: Estimating A Discrete-Choice Model Of French Farm Couples' Labor Decisions," Discussion Papers 14990, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
- Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
- 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.
- Huffman, Wallace, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," Staff General Research Papers Archive 10973, Iowa State University, Department of Economics.
- A. Kimhi, 1994. "Participation Of Farm Owners In Farm And Off-Farm Work Including The Option Of Full-Time Off-Farm Work," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 232-239.
- 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.
- Johan F. M. Swinnen & Liesbeth Dries & Karen Macours, 2005. "Transition and agricultural labor," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 15-34, 01.
- Swinnen, Johan F.M. & Dries, Liesbeth & Macours, Karen, 2001. "Transition And Agricultural Labour," 2001 Annual meeting, August 5-8, Chicago, IL 20602, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
- Joe Dewbre, 2006. "The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 393-408.
- Karen Macours & Johan F. M. Swinnen, 2005. "Agricultural Labor Adjustments in Transition Countries: The Role of Migration and Impact on Poverty ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 405-411.
- Luka Juvančič & Emil Erjavec, 2005. "Intertemporal analysis of employment decisions on agricultural holdings in Slovenia," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 153-161, 09.
- Juvancic, Luka & Erjavec, Emil, 2003. "Intertemporal Analysis Of Employment Decisions On Agricultural Holdings In Slovenia," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25840, International Association of Agricultural Economists.
- Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2003. "Agriculture on the Move: Exploring Regional Differences in Farm Exit Rates," FE Working Papers 0308, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
- Rizov, Marian & Swinnen, Johan F.M., 2004. "Human capital, market imperfections, and labor reallocation in transition," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 745-774, December.
- Madior Fall & Thierry Magnac, 2004. "How Valuable Is On-Farm Work to Farmers?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 267-281.
- Madior Fall & Thierry Magnac, 2002. "How Valuable is On-Farm Work to Farmers ?," Working Papers 2002-35, Centre de Recherche en Economie et Statistique.
- Madior Fall & Thierry Magnac, 2002. "How valuable is on-farm work to farmers?," Research Unit Working Papers 0204, Laboratoire d'Economie Appliquee, INRA.
- Schnicke, Hauke & Happe, Kathrin & Sahrbacher, Christoph, 2007. "Structural change and farm labour adjustments in a dualistic farm structure: a simulation study for the region Nitra in southwest Slovakia
[Landwirtschaftliche Beschäftigung und Strukturwandel in d," IAMO Discussion Papers 112, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
- 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.
- Michael Kevane, 1996. "Agrarian Structure and Agricultural Practice: Typology and Application to Western Sudan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 236-245.
- Barry K. Goodwin & Matthew T. Holt, 2002. "Parametric and Semiparametric Modeling of the Off-Farm Labor Supply of Agrarian Households in Transition Bulgaria," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 184-209.
- de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
- Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eps:fmwppr:124. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleni Kaditi)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.