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Off-Farm Employment and Economic Crisis: Evidence from Cyprus

Author

Listed:
  • Elias Giannakis

    (Energy, Environment and Water Research Center, The Cyprus Institute, 20 Konstantinou Kavafi Street, 2121 Nicosia, Cyprus)

  • Sophia Efstratoglou

    (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, 75 Iera Odos, 11855 Athens, Greece)

  • Artemis Antoniades

    (Department of Agriculture, Ministry of Agriculture, Rural Development and Environment, Louki Akrita, 1412 Nicosia, Cyprus)

Abstract

Off-farm employment is an important strategy for complementing farm household income and maintaining rural livelihoods. A multilevel logistic regression model was applied to investigate the effect of farm-level and regional-level factors on off-farm employment in Cyprus during the recent economic crisis period. The performance of nonfarm sectors positively affects off-farm employment; a one-percent increase in the share of the secondary and tertiary sector employment increases the likelihood of off-farm work by 9.5 times. The importance of location was also identified. Farm households located in rural areas are 70% less likely to engage in off-farm work than households located in urban areas. The positive effect of educational attainment and the negative effect of farm training confirmed the importance of human capital characteristics on off-farm labour participation. Farm structural factors are also significant determinants of off-farm employment. A one-hectare increase in the farm size decreases the odds of off-farm labour participation by 50%. Operators of crop farming holdings are 4.2 times more likely to work off the farm than operators of livestock and mixed-farming holdings. The results reveal the importance of adopting a multilevel and integrated approach for the analysis of off-farm employment.

Suggested Citation

  • Elias Giannakis & Sophia Efstratoglou & Artemis Antoniades, 2018. "Off-Farm Employment and Economic Crisis: Evidence from Cyprus," Agriculture, MDPI, vol. 8(3), pages 1-11, March.
    • Handle: RePEc:gam:jagris:v:8:y:2018:i:3:p:41-:d:136364
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