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Employment Effects of CAP Payments in the UK Non-Farm Economy

Marian Rizov (), Sophia Davidova () and Alastair Bailey

Chapter 9 in Rural Policies and Employment:TransAtlantic Experiences, 2019, pp 147-161 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The effects of the Common Agricultural Policy (CAP) payments on indirectly generated non-farm jobs in small- and medium-sized enterprises (SMEs) are central to job creation. This chapter examines whether there are differences in these effects according to business location (rural or urban), the agricultural supply chain, and according to CAP pillars, using both static and dynamic models of employment. The results suggest positive net spillovers of CAP payments to non-farm employment. Although their magnitudes are small, they are economically significant. In general, Pillar 1 has a stronger positive employment effect than Pillar 2, but Pillar 2 payments have a stronger positive effect per Euro spent in rural areas and within the agricultural supply chain.

Keywords: Rural Areas; Rural Development; Agriculture; Employment; Labor; Jobs; Common Agricultural Policy; European Union; United States (search for similar items in EconPapers)
JEL-codes: P25 Q18 (search for similar items in EconPapers)
Date: 2019
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Related works:
Journal Article: Employment effects of CAP payments in the UK non-farm economy (2019) Downloads
Journal Article: Employment effects of CAP payments in the UK non-farm economy (2018) Downloads
Journal Article: Employment effects of CAP payments in the UK non-farm economy (2018) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2018) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2017) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2017) Downloads
Working Paper: Employment effects of CAP payments in the UK non-farm economy (2016) Downloads
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