Labour adjustments in agriculture: evidence from Romania

Barbara Tocco, Sophia Davidova and Alastair Bailey

Studies in Agricultural Economics, 2014, vol. 116, issue 2, 7

Abstract: This paper explores the slow pace of structural change which has characterised the post-transition period in Romania and sheds light on the dynamics of labour adjustments. A multinomial logit is employed to investigate the determinants of inter-sectoral labour movements in the period 2003-06. The high share of farm employment in Romania, mostly characterised by family workers and self-employed, suggests that agriculture serves as a buffer against unemployment. Whereas the main channel of farm labour outflows is closely related to retirement, movements to other sectoral employment are signifi cantly hindered by the low levels of education. The findings are important from a policy point of view, suggesting the need for investments in human capital, specifi cally in education of the rural population with the purpose of enhancing the mobility of labour and facilitating a smooth transition across activities. At the same time, priority should be placed on rural development to encourage the diversification of the rural economy and the creation of alternative sources of income from non-agricultural activities.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Farm Management; Institutional and Behavioral Economics; Labor and Human Capital; Land Economics/Use (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: LABOUR ADJUSTMENTS IN AGRICULTURE: EVIDENCE FROM ROMANIA (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:stagec:183179

DOI: 10.22004/ag.econ.183179

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