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Labour adjustments in agriculture: evidence from Romania

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.

Romanian farm support: has European Union membership made a difference?

This paper provides an insight into the major policy measures that influenced Romanian agriculture before and after the country’s accession to the European Union (EU) in January 2007. It analyses the volume and composition of national and EU agricultural financial support between 2002 and 2012, and assesses how much has been transferred between agricultural farm support (Pillar 1) and rural development (Pillar 2). The findings show that, as membership drew near, Romania increased its efforts to provide farm support. The level of support has continued to rise (in nominal terms) year on year, from EUR 242 million in 2002 to almost EUR 600 million in 2005. By 2007, over EUR 1 billion (10 per cent of the Gross Value Added of the sector) was allocated to agriculture. Moreover, preparation for accession meant also significant changes in the structure of subsidies. This was redesigned so to emulate the Common Agricultural Policy, shifting the emphasis of support on to direct farm income. Overall, Romanian agriculture benefited from EUR 16.4 billion in subsidies between 2002 and 2012, of which almost half (EUR 7.8 billion) came from the EU. With accession, the share of EU financial support has increased, particularly in the form of ...

Journal Metrics

Scimago Journal & Country Rank

 

 

 

 

  • Scopus SJR (2023): 0.29
  • Scopus CiteScore (2022): 2.0
  • WoS Journal Impact Factor (2023): 0.9
  • WoS Journal Citation Indicator (2023): 0.33
  • ISSN (electronic): 2063-0476
  • ISSN-L 1418-2106

 

Impressum

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

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

The publication cost of the journal is supported by the Hungarian Academy of Sciences.

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