Common Agricultural Policy effects on dynamic labour use in agriculture

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThe aim of this study is to investigate the effects of direct payments and rural development measures of the EU's Common Agricultural Policy (CAP) on employment in agriculture. We work with a dynamic labour demand equation augmented by the full set of policy instruments of the CAP, which is estimated on a panel dataset of 69 East German regions. We present results for four estimators which differ in how they eliminate the fixed effects and how they address the endogeneity of the lagged dependent variable. The results suggest that there were few desirable effects on job maintenance in agriculture. While there is some indication that investment subsidies have halted labour shedding on farms, a rise in the general wage level reduced labour use in agriculture. Changes in direct payments had no employment effects. Generally, labour adjustment exhibits a strong path dependency.

Comparative evaluation of crop water use efficiency, economic analysis and net household profit simulation in arid Northwest China

“…Policy makers should provide some guidance regarding planting and cropland management and introduce the surplus rural labor to work in cities. Petrick and Zier (2012) confirmed that common agricultural policy could adjust reasonable labor use in agriculture and raise general wage levels. With simulation of the rate of decreasing onion production and rate of increasing migrant workers on Minqin basis, the net household profit could be increased if low prices of agricultural products could be predicted.…”

Does the Decoupling Reform Affect Agricultural Employment in Sweden? Evidence from an Exogenous Change

“…() find that a subsidy promoting ‘development and structural adjustment of rural areas’ affects agricultural employment in France negatively. By analysing the dynamic labour use, Petrick and Zier () find that investment aids slow down job reductions.…”

“…On the other hand, Petrick and Zier (2011) find that the farm investment aids and transfers to less developed areas have no impact on employment, and Schmitt et al (2004) find that a subsidy promoting 'development and structural adjustment of rural areas' affects agricultural employment in France negatively. By analysing the dynamic labour use, Petrick and Zier (2012) find that investment aids slow down job reductions.…”

“…Decoupled subsidies are often assumed to have no impact on labour use (Ahearn et al, 2006;Petrick and Zier, 2012) and, when invested in labour-shedding technology, rather than protect jobs in agriculture they might well decrease employment (Petrick and Zier, 2011). The subsidies may also help some farmers to capitalise and buy out farmers willing to exit the sector (Goetz and Debertin, 1996).…”

Factors affecting farm size on the European level and the national level of the Czech Republic

“…However, Petrick and Zier (2012), who studied the effect of the CAP direct payments and the rural development measures on unemployment in agriculture, determined that the CAP has a very limited impact on either the agricultural job creation or maintenance. Although, Ahearn et al (2006) or Bartolini and Viaggi (2013) have emphasized the CAP's substantial effect -particularly in relation to its direct payments -on changes in the agricultural structure.…”