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Patterns and Determinants of Off-Farm Migration: Transfer frictions and persistency of relative income gaps

  • Olper, Alessandro
  • Raimondi, Valentina
  • Bertoni, Danilo
  • Cavicchioli, Daniele

The inter-sectoral migration of agricultural labour is a complex but fundamental process of economic development largely affected by the growth of agricultural productivity and the evolution of the agricultural relative income gap. Theory and some recent anecdotal evidence suggest that as an effect of large fixed and sunk costs of out-farm migration, the productivity gap between the agricultural and non-agricultural sectors should behave non-monotonically or following a U-shaped evolution during economic development. Whether or not this relationship holds true across a sample of 38 developing and developed countries and across more than 200 EU regions was empirically tested. Results strongly confirm this relationship, which also emphasises the role played by national agricultural policy.

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Paper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 146.

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Length: 18 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:eps:fmwppr:146
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  1. Yang, Dennis T. & Hao Zhou, 1997. "Rural-Urban Disparity and Sectoral Labor Allocation in China," Working Papers 97-02, Duke University, Department of Economics.
  2. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331 Elsevier.
  3. Olper,Alessandro, & Raimondi,Valentina & Cavicchioli,Daniele & Vigani,Mauro, 2012. "Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel data analysis across EU regions," Factor Markets Working Papers 133, Centre for European Policy Studies.
  4. Hayami, Yujiro, 2007. "An emerging agricultural problem in high-performing Asian economies," Policy Research Working Paper Series 4312, The World Bank.
  5. Lilyan E. Fulginiti & Richard K. Perrin, 1999. "Have Price Policies Damaged Ldc Agricultural Productivity?," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 469-475, October.
  6. D. Gale Johnson, 1951. "Functioning of the Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 33(1), pages 75-87.
  7. Dennis Tao Yang, 1999. "Urban-Biased Policies and Rising Income Inequality in China," American Economic Review, American Economic Association, vol. 89(2), pages 306-310, May.
  8. Marcel P. Timmer & Mary O’Mahony & Bart van Ark, 2007. "EU KLEMS Growth and Productivity Accounts: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 71-85, Spring.
  9. Williamson, Jeffrey G., 1988. "Migration and urbanization," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 11, pages 425-465 Elsevier.
  10. Dennis, Benjamin N. & Iscan, Talan B., 2007. "Productivity growth and agricultural out-migration in the United States," Structural Change and Economic Dynamics, Elsevier, vol. 18(1), pages 52-74, March.
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