This is the first paper to study job creation and destruction in EU agriculture. We disaggregate gross employment patterns and net job flows into detailed intra-sectoral labour adjustment dynamics based on a unique EU-wide farm level panel dataset for 1990–2005. We find that: (1) job creation and destruction rates in EU agriculture are comparable to other sectors; (2) there is some evidence of ongoing substitution of family labour for hired labour; (3) there are important differences in job creation and destruction rates between different Member States; (4) these differences can be attributed to structural differences across countries, sectors and farm types; (5) time variation of job reallocation fluctuates countercyclically; and (6) idiosyncratic effects are the main driver of time variance in job reallocation.
- off-farm labor
- work decisions