Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel data analysis across EU regions

This 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 payments from the common agricultural policy (CAP) on this important adjustment process. Using static and dynamic panel data estimators, we show that standard neoclassical drivers, like relative income and the relative labour share, represent significant determinants of the intersectoral migration of agricultural labour. Overall, CAP payments contributed significantly to job creation in agriculture, although the magnitude of the economic effect was rather moderate. We also find that pillar I subsidies exerted an effect approximately two times greater than that of pillar II payments.


Editor(s):
CEPS
Issue Date:
Jul 20 2012
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/128790
Total Pages:
25
JEL Codes:
Q12; Q18; O13; J21; J43; J60
Series Statement:
Factor Markets Working Paper
28




 Record created 2017-04-01, last modified 2017-08-26

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