Why do Swedish Fishermen Leave the Sector?

Abstract

An understanding of fishers' decisions to exit or stay in a fishery is important for developing effective policy measures. In this study, we analyze the factors influencing this decision using a large administrative database covering the entire Swedish fisher population, their family ties, and detailed labour market data spanning two more than two decades. This enable us to focus on factors such as multiple-job holding, partner (family) income, education, and other socio-economic variables potentially important for the exit decision. The panel structure of the also makes it possible to analyze the importance of local labour market conditions (such as the unemployment rate). We also analyze the factors influencing the decision to enter fisheries. Interestingly, we find strong intergenerational links in the Swedish fisheries sector; around 65% of all young fishermen (between 20 and 35 years) have a father that work (or used to work) in fisheries. This finding motivated us to estimate an empirical model of occupational choice for children of fishermen. Using discrete choice econometric techniques we find that future income possibilities (proxied by father income) as well as family-related variables affect the probability of entering fisheries.Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, held July 11-15, 2016 at Aberdeen Exhibition and Conference Center (AECC), Aberdeen, Scotland, UK