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Abstract
The paper deals with the determinants of labour out-migration from agriculture across 149
EU regions over the 1990-2008 period. The central aim is to shed light on the role played
by CAP payments on this important adjustment process. Using static and dynamic panel
data estimators, we show that standard neo-classic drivers, like the relative income and the
relative labour share, represent significant determinants of the inter-sectoral migration of
agricultural labour. Overall, CAP payments contributed significantly to job creation in
agriculture, although the magnitude of the economic effect was quite moderate. We also
found that Pillar I subsidies exerted an effect approximately two times greater than that of
Pillar II payments