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The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States

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  • Tocco, Barbara
  • Davidova, Sophia
  • Bailey, Alastair

Abstract

This paper examines the determinants of farm exit under the implementation of CAP payments in four selected EU countries (France, Hungary, Italy and Poland) during the period 2005-08. In particular, it studies whether the CAP contributes to job maintenance or accelerates labour shedding, taking into account the two ‘Pillars’ of the CAP, i.e. Pillar 1 and Pillar 2. The main results suggest that total CAP expenditure at the regional level reduce the out-farm migration of agricultural workers in the two New Member States, Hungary and Poland. Conversely, the non-significant results for the ‘old’ Member States may be interpreted as the result of opposing effects of coupled payments and rural development support. The diverse impact of CAP on the likelihood of leaving agriculture in the four countries reflects the heterogeneity in the EU, which does not allow a common and simple generalisation of the effect of the CAP on labour allocation.

Suggested Citation

  • Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2016. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," 160th Seminar, December 1-2, 2016, Warsaw, Poland 249757, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa160:249757
    DOI: 10.22004/ag.econ.249757
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    Cited by:

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    2. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2016. "Part-Time Farming in Italy: Does Farm Size Really Matter?," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236291, Agricultural Economics Society.
    3. Davidova, Sophia & Hennessy, Thia & Thomson, Ken, 2016. "Rural Jobs and the CAP: Spitting into the Wind?," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236364, Agricultural Economics Society.
    4. Aldona Mrówczyńska-Kamińska & Ewelina Szuba-Barańska & Walenty Poczta, 2021. "Wyniki produkcyjne oraz efektywność agrobiznesu w krajach Europy Środkowo-Wschodniej," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 87-117.
    5. Nelė Jurkėnaitė & Tomas Baležentis & Dalia Štreimikienė, 2022. "The sustainability prism of structural changes in the European Union agricultural system: The nexus between production, employment and energy emissions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 145-158, January.
    6. Apostolos G. Papadopoulos, 2015. "The Impact of the CAP on Agriculture and Rural Areas of EU Member States," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 4(1), pages 22-53, April.
    7. Artiom Volkov & Tomas Balezentis & Mangirdas Morkunas & Dalia Streimikiene, 2019. "In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union?," Sustainability, MDPI, vol. 11(12), pages 1-15, June.
    8. Nicola Galluzzo, 2016. "Role Of Financial Subsidies Allocated By The Cap And Out Emigration In Romanian Rural Areas," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 218-224, June.
    9. Szerletics, Ákos, 2018. "Degressivity, capping and European farm structure: New evidence from Hungary," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(2), August.
    10. Aldona Mrówczyńska-Kamińska & Ewelina Szuba-Barańska & Walenty Poczta, 2021. "Wyniki produkcyjne oraz efektywność agrobiznesu w krajach Europy Środkowo-Wschodniej," Ekonomista, Polskie Towarzystwo Ekonomiczne, vol. 1, pages 87-117, January.
    11. Kiryluk-Dryjska, Ewa & Baer-Nawrocka, Agnieszka, 2019. "Reforms of the Common Agricultural Policy of the EU: Expected results and their social acceptance," Journal of Policy Modeling, Elsevier, vol. 41(4), pages 607-622.
    12. Lillemets, Jüri & Fertő, Imre & Viira, Ants-Hannes, 2022. "The socioeconomic impacts of the CAP: Systematic literature review," Land Use Policy, Elsevier, vol. 114(C).
    13. Tocco, Barbara & Bailey, Alastair & Davidova, Sophia & Raimondi, Valentina, 2015. "Women and Part-Time Farming: Understanding Labor Supply Decisions in Italian Farm Households," 2015 Conference, August 9-14, 2015, Milan, Italy 211932, International Association of Agricultural Economists.
    14. Gecaj, Merita & Shahu, Edmira Ozuni & Imami, Drini & Skreli, Engjell & Jambor, Attila, 2018. "Analysing the impact of subsidies in the Albanian agriculture sector – A comparative approach," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271964, European Association of Agricultural Economists.
    15. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka, 2021. "Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications," Agriculture, MDPI, vol. 11(4), pages 1-14, March.
    16. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka & Obinna Okereke, 2022. "The Environmental and Climatic CAP Measures in Poland vs. Farmers’ Expectations—Regional Analysis," Energies, MDPI, vol. 15(13), pages 1-13, June.

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    More about this item

    Keywords

    Community/Rural/Urban Development; Environmental Economics and Policy; Labor and Human Capital;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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