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.

Keywords

Government spending; Transfer; Employment; CAP; Agricultural subsidies

Published in

Regional Science and Urban Economics
2017, Volume: 63, pages: 13-24

SLU Authors

• Blomquist, Johan

  • Department of Economics, Swedish University of Agricultural Sciences
    

Sustainable Development Goals

SDG8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all


UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.1016/j.regsciurbeco.2016.12.001

Permanent link to this page (URI)

https://res.slu.se/id/publ/78543