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Do the CAP subsidies increase employment in Sweden? estimating the effects of government transfers using an exogenous change in the CAP

Blomquist, Johan LU and Nordin, Martin LU (2017) In Regional Science and Urban Economics 63. p.13-24
Abstract

This study evaluates the impact of agricultural subsidies (CAP) on employment outside the agricultural sector. A side-effect of the decoupling reform in 2005 was that Sweden introduced a grassland support which caused a redistribution of payments among regions. This heterogeneity in transfers is used to identify the effects of government transfers on regional labour markets. The effect on employment is estimated using Swedish municipality data for the years 2001 to 2009. The subsidy creates private jobs at a cost of about $26,000 per job, which is consistent with earlier estimates based on US data.

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Agricultural subsidies, CAP, Employment, Government spending, Transfer
in
Regional Science and Urban Economics
volume
63
pages
12 pages
publisher
Elsevier
external identifiers
  • scopus:85007495957
  • wos:000395609500002
ISSN
0166-0462
DOI
10.1016/j.regsciurbeco.2016.12.001
language
English
LU publication?
yes
id
ad36c33e-dbe1-4b57-a0c1-c4c86edf540d
date added to LUP
2017-02-03 08:36:36
date last changed
2018-01-07 11:47:52
@article{ad36c33e-dbe1-4b57-a0c1-c4c86edf540d,
  abstract     = {<p>This study evaluates the impact of agricultural subsidies (CAP) on employment outside the agricultural sector. A side-effect of the decoupling reform in 2005 was that Sweden introduced a grassland support which caused a redistribution of payments among regions. This heterogeneity in transfers is used to identify the effects of government transfers on regional labour markets. The effect on employment is estimated using Swedish municipality data for the years 2001 to 2009. The subsidy creates private jobs at a cost of about $26,000 per job, which is consistent with earlier estimates based on US data.</p>},
  author       = {Blomquist, Johan and Nordin, Martin},
  issn         = {0166-0462},
  keyword      = {Agricultural subsidies,CAP,Employment,Government spending,Transfer},
  language     = {eng},
  month        = {03},
  pages        = {13--24},
  publisher    = {Elsevier},
  series       = {Regional Science and Urban Economics},
  title        = {Do the CAP subsidies increase employment in Sweden? estimating the effects of government transfers using an exogenous change in the CAP},
  url          = {http://dx.doi.org/10.1016/j.regsciurbeco.2016.12.001},
  volume       = {63},
  year         = {2017},
}