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The Impact of CAP Reforms on Farm Labour Structure

  • Kaditi, Eleni
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    The labour force engaged in the agricultural sector is declining over time, and one can observe the reallocation of labour from family members to hired workers. Using farm-level data, this paper analyses the on-farm labour structure in Greece and assesses the factors driving its evolution over the period 1990-2008. The impact of agricultural policies and farm characteristics is examined in a dynamic panel analysis. Family and hired labour are found to be substitutes rather than complements, while agricultural support measures appear to negatively affect demand for both family and hired labour. Decoupled payments and subsidies on crops are found to have a significant impact on both sources of labour, as well as subsidies for rural development that do not favour on-farm labour use. The paper also finds that structural labour adjustments are the result of farm characteristics, such as farm size and location. The results are robust to various estimation techniques and specifications.

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    Paper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 177.

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    Length: 18 pages
    Date of creation: Aug 2013
    Date of revision:
    Handle: RePEc:eps:fmwppr:177
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    4. Dries, Liesbeth & Ciaian, Pavel & Kancs, d'Artis, 2011. "Job Creation And Job Destruction In The Eu Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114430, European Association of Agricultural Economists.
    5. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, 2012. "Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel data analysis across EU regions," Working Papers 128790, Factor Markets, Centre for European Policy Studies.
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    14. Huffman, Wallace E., 1991. "Agricultural Household Models: Survey and Critique," Staff General Research Papers 11008, Iowa State University, Department of Economics.
    15. 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.
    16. Michel Blanc & Eric Cahuzac & Bernard Elyakime & Gabriel Tahar, 2008. "Demand for on-farm permanent hired labour on family holdings," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(4), pages 493-518, December.
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