IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU

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

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.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.factormarkets.eu/system/files/FM%20WP46%20Determinants%20to%20Leave%20Agriculture.pdf
Download Restriction: no

Paper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 158.

as
in new window

Length: 24 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:eps:fmwppr:158
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
Email:


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.:

as in new window
  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Nigel Key, 2005. "How much do farmers value their independence?," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 117-126, 07.
  3. Gunnar Breustedt & Thomas Glauben, 2007. "Driving Forces behind Exiting from Farming in Western Europe," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 115-127, 02.
  4. Huffman, Wallace, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," Staff General Research Papers 10973, Iowa State University, Department of Economics.
  5. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, November.
  6. Larson, Donald & Mundlak, Yair, 1997. "On the Intersectoral Migration of Agricultural Labor," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 295-319, January.
  7. Ayal Kimhi, 2000. "Is Part-Time Farming Really a Step in the Way Out of Agricultural?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 38-48.
  8. Key, Nigel D. & Roberts, Michael J., 2009. "AJAE appendix for “Nonpecuniary Benefits to Farming: Implications for Supply Response to Decoupled Paymentsâ€," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 91(1), February.
  9. Joakim Gullstrand & Kerem Tezic, 2008. "Who leaves after entering the primary sector? Evidence from Swedish micro-level data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(1), pages 1-28, March.
  10. Bojnec, Stefan & Dries, Liesbeth & Swinnen, Johan F.M., 2003. "Human Capital And Labor Flows Out Of The Agricultural Sector: Evidence From Slovenia," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25803, International Association of Agricultural Economists.
  11. Nigel Key & Michael J. Roberts, 2009. "Nonpecuniary Benefits to Farming: Implications for Supply Response to Decoupled Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 1-18.
  12. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  13. 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.
  14. 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.
  15. 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.
  16. Stefan Bojnec & Liesbeth Dries, 2005. "Causes of Changes in Agricultural Employment in Slovenia: Evidence from Micro-data," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 399-416.
  17. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eps:fmwppr:158. 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.