EU policy reform simulation based on panel data estimation of on- and off-farm labour supply equations for Dutch dairy farmers

This research focuses on the estimation of labour supply equations for Dutch dairy farmers that are suitable for policy simulations. Data availability leads to the fact that we can not estimate structural labour supply equations. We show how to derive reduced form equations suitable for policy simulations. In this research we use the panel data sample selection estimation approach of Kyriazidou (1997) and Wooldridge (1995) to estimate the off-farm labour supply equation. The two lead to different estimation results and different simulation results based on these.Econometrics, Panel Data, Sample Selection, Labour Supply, CAP Reform, Labor and Human Capital, C23, C24, C51, C53, D13, J22, Q12, Q18,

Farm growth and exit: consequences of EU dairy policy reform for Dutch dairy farming

The purpose of this paper is to analyse farm growth and exit and its interaction in Dutch dairy farming as consequences of the 2003 CAP reform and 2008 CAP Health Check. Results indicate that the decision to exit dairy farming is largely determined by household characteristics as age and the size of the household. Farm growth is strongly influenced by the availability of labour, capital and land. Simulation results show that the dairy policy reforms reduce farm growth and exit. This is mainly caused by the quota increases.Agricultural and Food Policy,

On- and Off-Farm Labour Supply of Dutch Dairy Farmers: Estimation and Policy Simulations

This research focuses on the effect of decoupled payments on labour supply of Dutch dairy farmers. Data availability leads to the fact that we can not estimate structural labour supply equations. We show how to derive reduced form equations suitable for policy simulations. We use the panel data sample selection estimation approach Wooldridge (1995) to estimate the off-farm labour supply equation. This method is based on Mundlak's (1978) linear panel data estimation approach, which we use to estimate the on-farm labour supply equations. Even though, simulations show a significant negative effect of decoupled payments on labour supply, the economic significance of this effect is very limited.decoupled payments, labour supply, panel data, sample selection, policy simulation, Labor and Human Capital, Livestock Production/Industries, C23, C24, C51, C53, D13, J22, Q12, Q18,

EU policy reform simulation based on panel data estimation of on- and off-farm labour supply equations for Dutch dairy farmers

This research focuses on the estimation of labour supply equations for Dutch dairy farmers that are suitable for policy simulations. Data availability leads to the fact that we can not estimate structural labour supply equations. We show how to derive reduced form equations suitable for policy simulations. In this research we use the panel data sample selection estimation approach of Kyriazidou (1997) and Wooldridge (1995) to estimate the off-farm labour supply equation. The two lead to different estimation results and different simulation results based on these

On- and Off-Farm Labour Supply of Dutch Dairy Farmers: Estimation and Policy Simulations

This research focuses on the effect of decoupled payments on labour supply of Dutch dairy farmers. Data availability leads to the fact that we can not estimate structural labour supply equations. We show how to derive reduced form equations suitable for policy simulations. We use the panel data sample selection estimation approach Wooldridge (1995) to estimate the off-farm labour supply equation. This method is based on Mundlak's (1978) linear panel data estimation approach, which we use to estimate the on-farm labour supply equations. Even though, simulations show a significant negative effect of decoupled payments on labour supply, the economic significance of this effect is very limited

Farm growth and exit: consequences of EU dairy policy reform for Dutch dairy farming

The purpose of this paper is to analyse farm growth and exit and its interaction in Dutch dairy farming as consequences of the 2003 CAP reform and 2008 CAP Health Check. Results indicate that the decision to exit dairy farming is largely determined by household characteristics as age and the size of the household. Farm growth is strongly influenced by the availability of labour, capital and land. Simulation results show that the dairy policy reforms reduce farm growth and exit. This is mainly caused by the quota increases

ON- AND OFF-FARM LABOUR SUPPLY OF DUTCH DAIRY FARMERS: ESTIMATION AND POLICY SIMULATIONS Authors

verbatim copies of this document for non-commercial purposes by any means, provided that This research focuses on the effect of decoupled payments on labour supply of Dutch dairy farmers. Data availability leads to the fact that we can not estimate structural labour supply equations. We show how to derive reduced form equations suitable for policy simulations. We use the panel data sample selection estimation approach Wooldridge (1995) to estimate the off-farm labour supply equation. This method is based on Mundlak’s (1978) linear panel data estimation approach, which we us to estimate the on-farm labour supply equations. Even though, simulations show a significant negative effect of decoupled payments on labour supply, the economic significance of this effect is very limited