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Effects of CAP reform on regional employment in the EU

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  • Helming, John F.M.
  • Verhoog, A. David
  • van Meijl, Hans
  • Nowicki, Peter

Abstract

CAP reform affects employment in the agricultural sector as well as in other sectors of the regional economy through changes in regional and sectoral competitiveness and resulting re-allocation of fixed resources. However, analysis of the relationship between CAP reform and total regional employment for the EU as a whole are scarce. In this paper a rather ad-hoc method is proposed to fill this gap. Both the CAPRI model and the LEITAP model is used. Both models are linked through an econometrically estimated and scenario specific relationship between agricultural income and employment in LEITAP. LEITAP is also used to analyse the employment changes at regional level in the rest of the economy. LEITAP results are regionalized using sectoral employment shares per region in 2020 in the reference scenario. This paper presents and discusses the strengths and the weaknesses of the proposed ad-hoc downscaling approach.

Suggested Citation

  • Helming, John F.M. & Verhoog, A. David & van Meijl, Hans & Nowicki, Peter, 2008. "Effects of CAP reform on regional employment in the EU," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44373, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44373
    DOI: 10.22004/ag.econ.44373
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    References listed on IDEAS

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    4. Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(4), pages 445-470, December.
    5. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
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    Cited by:

    1. Esposti, Roberto, 2008. "Reforming The Cap: An Agenda For Regional Growth?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44868, European Association of Agricultural Economists.
    2. Dupraz, Pierre & Latruffe, Laure, 2015. "Trends in family labour, hired labour and contract work on French field crop farms: The role of the Common Agricultural Policy," Food Policy, Elsevier, vol. 51(C), pages 104-118.

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