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Home Browse 2014 – Volume 116 Volume 116 - Issue 2

Labour adjustments in agriculture: evidence from Romania

byTOCCO, Barbara,DAVIDOVA, SophiaandBAILEY, Alastair
  • Year 2014
  • Volume 116
  • Issue 2
  • Pages 67-73

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.

Tags: agricultureinter-sectoral movementslabour adjustmentsmultinomial logitRomania
  • http://dx.doi.org/10.7896/j.1406
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  • ISSN (electronic): 2063-0476
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Publisher Name: Institute of Agricultural Economics Nonprofit Kft. (AKI)

Publisher Headquarters: Zsil utca 3-5, 1093-Budapest, Hungary

Name of Responsible Person for Publishing:        Dr. Pal Goda

Name of Responsible Person for Editing:             Dr. Attila Jambor

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