Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel Data Analysis Across EU Regions

Factor Markets Working Paper No. 28

25 Pages Posted: 27 Jul 2012

See all articles by Alessandro Olper

Alessandro Olper

Università degli Studi di Milano; KU Leuven - Centre for Institutions and Economic Performance (LICOS)

Valentina Raimondi

Università degli Studi di Milano

Mauro Vigani

Joint Research Center of the European Commission; European Commission JRC

Daniele Cavicchioli

University of Milan

Date Written: July 20, 2012

Abstract

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.

Keywords: CAP, EU, labour out-migration, intersectoral migration, CAP payments, job creation

Suggested Citation

Olper, Alessandro and Raimondi, Valentina and Vigani, Mauro and Cavicchioli, Daniele, Does the Common Agricultural Policy Reduce Farm Labour Migration? Panel Data Analysis Across EU Regions (July 20, 2012). Factor Markets Working Paper No. 28. Available at SSRN: https://ssrn.com/abstract=2117757

Alessandro Olper (Contact Author)

Università degli Studi di Milano ( email )

Via Celoria, 2
Milano, 20133
Italy
+390250316481 (Phone)
+390250316486 (Fax)

HOME PAGE: http://users.unimi.it/olper/

KU Leuven - Centre for Institutions and Economic Performance (LICOS) ( email )

Waaistraat 6 - box 3511
Leuven, 3000
Belgium

Valentina Raimondi

Università degli Studi di Milano ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Mauro Vigani

Joint Research Center of the European Commission

C/ Inca Garcilaso
Seville
Spain

European Commission JRC ( email )

Calle Inca Garcilaso
Seville
Spain

Daniele Cavicchioli

University of Milan

Via Festa del Perdono
Milano
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
89
Abstract Views
444
rank
290,228
PlumX Metrics