Do the CAP subsidies increase employment in Sweden? estimating the effects of government transfers using an exogenous change in the CAP

Johan Blomquist and Martin Nordin

Regional Science and Urban Economics, 2017, vol. 63, issue C, 13-24

Abstract: This study evaluates the impact of agricultural subsidies (CAP) on employment outside the agricultural sector. A side-effect of the decoupling reform in 2005 was that Sweden introduced a grassland support which caused a redistribution of payments among regions. This heterogeneity in transfers is used to identify the effects of government transfers on regional labour markets. The effect on employment is estimated using Swedish municipality data for the years 2001 to 2009. The subsidy creates private jobs at a cost of about $26,000 per job, which is consistent with earlier estimates based on US data.

Keywords: Government spending; Transfer; Employment; CAP; Agricultural subsidies (search for similar items in EconPapers)
JEL-codes: E24 E62 Q18 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0166046216303489
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:63:y:2017:i:c:p:13-24

DOI: 10.1016/j.regsciurbeco.2016.12.001

Access Statistics for this article

Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou

More articles in Regional Science and Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().