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Abstract

This is the first paper to study job creation and destruction in EU agriculture. We disaggregate employment patterns and job flows into detailed intra-sectoral labour adjustment dynamics based on farm level panel observations from 1989-2006. We find that: (1) job creation and destruction rates in EU agriculture are high compared to other sectors; (2) there are important differences in job creation and destruction rates between different member states; (3) this can be attributed to differing initial farm structures: member states with small average farm sizes display higher job creation and destruction rates than those with larger average farm sizes.

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