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Abstract
We use a conditional difference-in-difference matching estimator and a 2003-2007 balanced
panel drawn from the FADN Italian sample to evaluate the impact at the farm level of the
implementation of the first Italian Rural Development Programme (RDP).
We find that, in average, farms receiving at least a RDP payment increased family labor, while
they did not increase total labour employed on farm. In addition, they experienced an increase
in labor profitability and added value, even though the estimate significance varies accordingly
to the matching method used. Our findings, suggest that the implementation of the first RDP
produced a positive direct impact on rural GDP, while it did not prove to be effective in terms
of rural employment growth.