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Employment effects of CAP payments in the UK non-farm economy

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

No 258637, 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland from Agricultural Economics Society

Abstract: This paper investigates the effect of the CAP payments on the indirectly generated non-farm jobs and whether there are differences in the effect according to business location - rural or urban - and according to CAP measures, in particular Pillar 1 and Pillar 2. A microeconomic approach is employed, based on company data from FAME dataset combined with detailed subsidies data from DEFRA. The focus is on employment in small and medium-sized enterprises (SMEs), which are central for job creation. The generalised method of moments (GMM) is used to estimate the effect of CAP payments on both the level and growth of employment. The results suggest positive net spillovers of CAP payments to non-farm employment. Although the magnitude of the effect is small, it is economically significant. Relative to Pillar 2, Pillar 1 payments have a stronger positive effect. As expected, the nonfarm employment effect is particularly important for rural SMEs.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; Labor and Human Capital; Public Economics (search for similar items in EconPapers)
Pages: 28
Date: 2017-04-25
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https://ageconsearch.umn.edu/record/258637/files/M ... s%207aes%20final.pdf (application/pdf)

Related works:
Chapter: 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 (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 (2016) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc17:258637

DOI: 10.22004/ag.econ.258637

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