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Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU. Factor Markets Working Document No. 46, May 2013

Tocco, Barbara and Bailey, Alastair and Davidova, Sophia (2013) Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU. Factor Markets Working Document No. 46, May 2013. [Working Paper]

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    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 new member states and the EU-15 can be explained by the diverse production structures, suggesting different capacities to release and absorb labour.

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    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > agriculture policy
    EU policies and themes > Policies & related activities > employment/labour market > labour/labor
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > Factor Markets Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 18 Dec 2014 13:07
    Number of Pages: 24
    Last Modified: 18 Dec 2014 13:07
    URI: http://aei.pitt.edu/id/eprint/58566

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