The Impact of CAP Reforms on Farm Labour Structure. Factor Markets Working Document No. 63, August 2013

The labour force engaged in the agricultural sector is declining over time, and one can observe the reallocation of labour from family members to hired workers. Using farm-level data, this paper analyses the on-farm labour structure in Greece and assesses the factors driving its evolution over the period 1990-2008. The impact of agricultural policies and farm characteristics is examined in a dynamic panel analysis. Family and hired labour are found to be substitutes rather than complements, while agricultural support measures appear to negatively affect demand for both family and hired labour. Decoupled payments and subsidies on crops are found to have a significant impact on both sources of labour, as well as subsidies for rural development that do not favour on-farm labour use. The paper also finds that structural labour adjustments are the result of farm characteristics, such as farm size and location. The results are robust to various estimation techniques and specifications.

A more effective structure for the Commission. EPC Commentary, 7 March 2014

The changeover in the European Commission in autumn of this year will be one of the key factors that will determine the direction of the European Union for the coming years. The question of who will get what job, how far the European Parliament elections can influence the appointment of the Commission President (and the impact this has on the relationship between EP and the Commission), and what the new focus of the Commission will be in terms of policy priorities will all have a strong influence on EU policy for some time to come.

Supply and Demand Side Limitations Affecting the Structure of Agriculture and the Rural Economy. Factor Markets Working Paper No. 21, February 2012

The paper criticises the neo-classical assumptions of perfect factor markets and of complete information, which constitute central elements in labour market theory. Based on literature review and on economic reports from transition economies, as well as developing countries and more advanced economies, this deliverable focuses on the structural impediments and imperfections which often characterise rural labour markets and which may prevent an efficient allocation of labour. According to empirical studies, transactions costs and rigidities hinder the well-functioning of labour markets and constrain labour adjustments. The paper attempts to classify the various limitations of rural labour markets from both supply and demand side, although the distinction is not always clear-cut as some problems occur on both sides. The identification of these issues is extremely important as it allows us to highlight the inefficiencies and the failures in labour markets and to understand their impact on labour allocation. In this context, market intervention is desirable and the paper provides particular support for rural development policies such as investments in human capital. Lastly, labour institutions can play a key role in promoting the well functioning of labour markets, thus it is fundamental that they are well in place.

Students in Work and their Impact on the Labour Market. CEPS Working Document No. 410/July 2015

The purpose of this study is to evaluate the size and composition of the student labour force in order to consider its potential impact on labour markets in the European Union. The paper is based on an analysis of EU Labour Force Survey data from 2011, supplemented by the findings of the EUROSTUDENT project. The structure of student labour is discussed within the framework of the so-called ‘crowding-out’ literature, which identifies competition for jobs between students and low educated non-students, particularly in the retail and wholesale sectors. In contrast to these assumptions, the authors found that, depending on the age of the student, the profile of student workers closely matches that of non-students with medium- to-high educational attainment. In general, the retail and wholesale sectors are of importance in the employment of students under the age of 25, but students typically take positions in the middle of the occupational hierarchy, rather than in the lower-grade positions. Meanwhile, older students, often professionals furthering their education while studying, are typically located in similar jobs and sectors to university graduates. A common trait of student work is its very high degree of flexibility compared to that of non-students. Nevertheless, the structure of student labour does not lead us to believe that student workers are particularly prone to be present in the precarious segment of the labour market.

The China-Russia trade relationship and its impact on Europe. Breugel Working Paper Issue 4, 2016

This paper analyses empirically how increasingly close trade relations between China and Russia might affect the European Union (EU). We show that EU countries are complementary to Russia on the Chinese market. However, Chinese exports are increasingly relevant substitutes for EU exports on the Russian market. This means that an increase in China-Russia economic cooperation should have a negative impact on European exports. We simulate a scenario in which trade tariffs between Russia and China are eliminated, which is found to reduce EU exports to Russia. Finally, a more granular approach to the question analyses which sectors in Europe will be more affected by the increasing economic links between China and Russia, and finds that electronic machinery, equipment and machinery, and nuclear reactors will be particularly affected. Such findings obviously show quickly China is moving up the ladder in terms of export structure and how strategically important it is for Europe to continue upgrading its industry to compete at the highest level of that ladder.