2013年-CEPS欧洲政策研究中心_Agricultural_Labour_Market_Flexibility_in_the_EU_and_Candidate_Countries_38页_387kb

Summary of "Agricultural Labour Market Flexibility in the EU and Candidate Countries"

Core Content

This paper explores the institutional frameworks and characteristics of agricultural labour markets across EU member states and candidate countries. It emphasizes the importance of well-functioning factor markets, particularly the labour market, for the competitiveness and growth of agriculture. The study aims to identify the key indicators that shape the flexibility or rigidity of these markets and to construct an index that allows for comparative analysis among countries.

The authors conducted a survey of selected EU27 and candidate countries (Croatia and Macedonia) to gather expert opinions on various aspects of the agricultural labour market. Based on this data, they developed an index to assess the overall flexibility of agricultural labour markets, which includes factors such as hiring and firing processes, working hours legislation, wage setting, unionization, taxation and social benefits, education and training, and labour mobility.

Main Points and Key Findings

1. Institutional Framework and Labour Market Functioning

• The institutional framework of the labour market includes both formal regulations and informal norms.
• Key elements influencing market flexibility are:
  • Employment protection laws
  • Unemployment benefits
  • Wage-setting mechanisms
  • Unionization levels
  • Taxation and social insurance schemes
  • Labour mobility and human capital development

2. Labour Market Flexibility Index

• The index is constructed based on survey responses and expert opinions.
• It allows for the ranking of countries on a scale of flexibility/rigidity.
• The index excludes the unionization component due to its limited relevance as a proxy for union power in the agricultural sector.

3. Hiring and Firing Process

• The ease of hiring and firing is a key indicator of market flexibility.
• In the general economy, most countries have a 40-hour workweek limit, with some exceptions (e.g., Belgium at 38 hours).
• In agriculture, the maximum hours are generally similar to the general economy, except for Croatia, where the limit is higher (52 hours vs. 42 in other sectors).

4. Working Hours Legislation

• The survey highlights differences in working hours regulations across countries.
• Belgium has the lowest limit (38 hours), while Great Britain, Ireland, and the Netherlands have higher limits.
• Some countries allow for temporary increases in working hours, but only for a limited period.

5. Wage Setting

• Minimum wage legislation is widespread, though not all countries have national minimum wages.
• Finland, Germany, Italy, and Sweden have industry-level agreements instead of national-level minimum wages.
• Adjusted for GDP per capita, the minimum wage in agriculture is highest in Ireland, France, and the Netherlands.
• Macedonia has the lowest minimum wage, even after adjustment.

6. Unionization

• Farmer unions are common, with the exception of Croatia and Slovakia.
• Union membership among farm operators varies from 50% in Belgium to 99% in Finland.
• Union membership among agricultural employees is generally lower than among operators.
• The authors decided to exclude unionization from the index due to its limited usefulness and the fact that it is weakest in countries with strong union power.

7. Taxation and Social Benefits

• The tax wedge (percentage of gross wage) for low-wage earners is generally between 30% and 45%.
• Belgium, France, and Germany have the highest tax wedges, while Great Britain and Ireland have the lowest.
• Unemployment benefits are typically available for one year, with some countries offering indefinite benefits.
• Farm operators are generally not entitled to unemployment payments.

8. Education and Training

• Most countries have agricultural training qualifications, but these are not mandatory for farmers.
• Educational attainment of farm operators varies, with Great Britain and Poland being notable outliers.
• In Great Britain, farm operators tend to have higher education levels than the general population.
• In Poland, farm operators have lower education levels than the general population.
• Agricultural employees in Great Britain have higher education levels, while those in Macedonia and Slovakia have lower levels.

9. Labour Mobility

• Car ownership per 1,000 adults is used as a proxy for mobility.
• There is a strong correlation between car ownership and GDP per capita.
• Great Britain and Finland report lower car ownership than some less affluent EU countries.
• Home ownership is considered a limiting factor for labour mobility.
• Home ownership is highest in Macedonia and Greece, lowest in Germany, Sweden, the Netherlands, and France.

10. Employment of Foreign Workers

• Foreign workers in agriculture are relatively uncommon in most countries.
• Exceptions include Belgium, Ireland, and the Netherlands.
• The use of foreign workers is increasing in most countries, with France and Macedonia as exceptions.

11. Farm Holding Structure

• Small family-owned farms dominate in several countries, including Finland, Greece, Ireland, Italy, Macedonia, Poland, and Sweden.
• The Netherlands has a prevalence of large family-owned farms.
• In France, small rented farms are common.
• Slovakia has a history of collectivist structures, which influences its farm holding composition.
• Germany exhibits strong regional variation in typical farm types.

Conclusion

The study provides a comprehensive analysis of the institutional characteristics of agricultural labour markets in the EU and candidate countries. It highlights the importance of flexibility in these markets for agricultural productivity and competitiveness. The constructed index allows for cross-country comparisons, identifying key areas where policy interventions may be necessary to enhance market flexibility. The findings suggest that factors such as wage flexibility, ease of hiring and firing, and access to foreign workers play a significant role in determining the rigidity or flexibility of agricultural labour markets.