Patterns and Determinants of Off-Farm Migration: Transfer Frictions and Persistency of Relative Income Gaps

Factor Markets Working Papers

Posted: 31 May 2013

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

Danilo Bertoni

University of Milan

Daniele Cavicchioli

University of Milan

Date Written: February 4, 2013

Abstract

The inter-sectoral migration of agricultural labour is a complex but fundamental process of economic development largely affected by the growth of agricultural productivity and the evolution of the agricultural relative income gap. Theory and some recent anecdotal evidence suggest that as an effect of large fixed and sunk costs of out-farm migration, the productivity gap between the agricultural and non-agricultural sectors should behave non-monotonically or following a U-shaped evolution during economic development. Whether or not this relationship holds true across a sample of 38 developing and developed countries and across more than 200 EU regions was empirically tested. Results strongly confirm this relationship, which also emphasises the role played by national agricultural policy.

Keywords: off-farm Migration, inter-sectoral migration, migration, agriculture, agricultural relative income gap, EU regions, EU, agricultural policy

Suggested Citation

Olper, Alessandro and Raimondi, Valentina and Bertoni, Danilo and Cavicchioli, Daniele, Patterns and Determinants of Off-Farm Migration: Transfer Frictions and Persistency of Relative Income Gaps (February 4, 2013). Factor Markets Working Papers. Available at SSRN: https://ssrn.com/abstract=2214925

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

Danilo Bertoni

University of Milan

Via Festa del Perdono
Milano
Italy

Daniele Cavicchioli

University of Milan

Via Festa del Perdono
Milano
Italy

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