Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU

Barbara Tocco, Alastair Bailey and Sophia Davidova

No 158, Factor Markets Working Papers from Centre for European Policy Studies

Abstract: The objective of this paper is to explore the determinants to leave agriculture and change occupational sector. We adopt a 3-step multivariate probit where we control for selection bias at two stages in the decisions to work and, at a later stage, exit agriculture. The analysis is based on the European Union Labour Force Survey data expanded with additional regional indicators. The main results suggest that younger individuals are more likely to leave farming activities, although the largest outflows of agricultural labour are mainly associated with the retirement of people. Self-employed and family workers are generally less likely to leave agriculture and those with low levels of educations are found to be significantly constrained in entering the non-farm economy. Moreover, labour market conditions at the regional level do matter for switching occupational sector. Differences in the results among the selected NMS and the EU-15 can be explained by the diverse production structures, suggesting different capacities to release and absorb labour.

Pages: 24 pages
Date: 2013-06
New Economics Papers: this item is included in nep-agr and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU (2013)
Working Paper: Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU (2013)
Working Paper: Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU (2013)
Working Paper: DETERMINANTS TO LEAVE AGRICULTURE AND CHANGE OCCUPATIONAL SECTOR: EVIDENCE FROM AN ENLARGED EU (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eps:fmwppr:158

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