Agricultural labour adjustment and the impact of Institutions

T. Herzfeld, T. Glauben, L.K.E. Dries

Research output: Contribution to conferenceConference paperAcademic

Abstract

The economic transformation in countries of Central and Eastern Europe as well as Asia resulted in a diverse picture of change in agricultural labour use. Based on a measure of sectoral labour adjustment, the paper explores the determinants of occupational labour flows paying special attention to the impact of institutions. Annual rates of occupational migration between agriculture and non-agriculture over the period 1978-2005 are calculated for a panel of 30 transition countries. Annual migration from agriculture ranges from outflows of nearly 8 percent of the agricultural labour force to immigration into agriculture about 9 percent on average. Fixed-effects panel models are used to explain the annual intersectoral labour flow. The most important determinants of the migration rate are the relative income differences between non-agricultural and agricultural sectors, the relative magnitude of agricultural labour, the development of terms of trade and the level of unemployment. Furthermore, the speed of economic reforms and the way of land privatization affect occupational migration significantly. An increasing intersectoral income difference points to still existing mobility restrictions for agricultural labour in some of the countries analyzed.
Original languageEnglish
Publication statusPublished - 2011
Event2nd AGRIMBA-AVA Congress 2011 Dynamics of international cooperation in rural development and agribusiness -
Duration: 22 Jun 201124 Jun 2011

Conference

Conference2nd AGRIMBA-AVA Congress 2011 Dynamics of international cooperation in rural development and agribusiness
Period22/06/1124/06/11

Fingerprint

Dive into the research topics of 'Agricultural labour adjustment and the impact of Institutions'. Together they form a unique fingerprint.

Cite this