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Labour Adjustments in Agriculture: Evidence from Romania

Lookup NU author(s): Dr Barbara Tocco

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Abstract

This paper explores the slow pace of structural change which has characterised the post-transition period in Romania and sheds light on the dynamics of labour adjustments. A multinomial logit is employed to investigate the determinants of inter-sectoral labour movements in the period 2003-06. The high share of farm employment in Romania, mostly characterised by family workers and self-employed, suggests that agriculture serves as a buffer against unemployment. Whereas the main channel of farm labour outflows is closely related to retirement, movements to other sectoral employment are significantly hindered by the low levels of education. The findings are important from a policy point of view, suggesting the need for investments in human capital, specifically in education of the rural population with the purpose of enhancing the mobility of labour and facilitating a smooth transition across activities. At the same time, priority should be placed on rural development to encourage the diversification of the rural economy and the creation of alternative sources of income from non-agricultural activities.


Publication metadata

Author(s): Tocco B, Davidova S, Bailey A

Publication type: Article

Publication status: Published

Journal: Studies in Agricultural Economics

Year: 2014

Volume: 116

Issue: 2

Pages: 67-73

Print publication date: 01/08/2014

ISSN (print): 1418-2106

ISSN (electronic): 2063-0476

Publisher: Research Institute of Agricultural Economics

URL: http://dx.doi.org/10.7896/j.1406

DOI: 10.7896/j.1406


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