Assessing the influence of direct payments on the rental value of agricultural land

Economic theory suggests that coupled and decoupled direct payments have different impacts on agricultural rental values because of the different production responses associated with these payments. This study investigates the impact of both coupled and decoupled EU CAP direct payments on rental values in Northern Ireland, using panel data taken from the farm business survey for the period from 1994 to 2002. Theoretically, agricultural land rents are a function of expected market returns and expected associated direct payments. The unobservable nature of expected returns means that actual market returns must be used as a proxy for the former in the empirical specification. As a consequence, the problem of bias due to expectation error arises. Using a GMM technique to take account of this problem, the results of this study show that the impact of CAP direct payments on rental values depends on the type of payment and on the nature of the production characteristics of the associated agricultural commodity.     

Jobs and agricultural policy: Impact of the common agricultural policy on EU agricultural employment

This paper investigates the relationship between EU agricultural subsidies and the outflow of labor from agriculture. We use more representative subsidy indicators and a wider coverage (panel data from 210 EU regions over the period 2004-2014) than has been used before. The data allow to better correct for sample selection bias than previous empirical studies. We find that, on average, CAP subsidies reduce the outflow of labor from agriculture, but the effect is almost entirely due to decoupled Pillar I payments. Coupled Pillar I payments have no impact on reducing labor outflow from agriculture, i.e. on preserving jobs in agriculture. The impact of Pillar II is mixed. Our estimates predict that an increase of 10 percent of the CAP budget would prevent an extra 16,000 people from leaving the EU agriculture sector each year. A 10 percent decoupling would save 13,000 agricultural jobs each year. However, the budgetary costs are large. The estimated cost is more than € 300,000 per year (or more than € 25,000 per month) per job saved in agriculture.     

The effects of government policies on agricultural input markets

Agricultural policies in most developed countries involve elements of price support. The primary objective appears to be the support of farm incomes, but effects of the policies are more wide ranging than this. The impact of price support on agricultural input markets in the UK is highlighted in this article and it is shown that the main effects of raising farm prices are to increase the wealth of landowners, increase capital intensity and reduce employment and wages of hired labour. These are not generally recognized as primary goals of the CAP. It is suggested that the British government might offset some of these effects through judicious reduction of capital grant rates.     

Job creation and job destruction in EU agriculture

This is the first paper to study job creation and destruction in EU agriculture. We disaggregate gross employment patterns and net job flows into detailed intra-sectoral labour adjustment dynamics based on a unique EU-wide farm level panel dataset for 1990–2005. We find that: (1) job creation and destruction rates in EU agriculture are comparable to other sectors; (2) there is some evidence of ongoing substitution of family labour for hired labour; (3) there are important differences in job creation and destruction rates between different Member States; (4) these differences can be attributed to structural differences across countries, sectors and farm types; (5) time variation of job reallocation fluctuates countercyclically; and (6) idiosyncratic effects are the main driver of time variance in job reallocation.     

Managerial Strategies, Labour and Employment Relations and the State: the Canadian Case and Beyond

This paper addresses: (1) the extent to which changes appear to have occurred in managerial strategies and labour and employment relations in Canadian firms, and (2) the role of the state relative to anonymous economic forces in accounting for Canadian developments. The general findings are that, while there have been a number of significant changes, these have been more moderate than expected by 'transformation' theory; furthermore, the Canadian case is consistent with the argument that state actions play a major role relative to more anonymous economic 'forces' in accounting for developments in labour and employment relations. It also suggests an alternative model to that typically assumed by transformation theory, one in which state policies and economic conditions are considered to be important not only for their direct effects on employer policies, but also for their indirect effects, through their implications for worker expectations and union militancy. Although these conclusions are tentative and call for more systematic, comparative research, they are consistent with arguments by Burawoy and others that state actions can serve as an important source of labour regulation at the level of the firm.     

Decoupled payments to facilitate CAP reform

There is a long tradition of advocacy of decoupled compensation payments to facilitate reform of agricultural policies. To illustrate this, we cite some of the European literature of the 1960s and 1970s. In the 1980s and 1990s, decoupled payments were frequently proposed, but despite years of discussion there is still surprisingly little agreement on the role that decoupled compensation payments can play in facilitating common agricultural policy (CAP) reform. The Uruguay Round Agreement introduced the so-called blue and green boxes; and the MacSharry and Agenda 2000 reforms have made extensive use of the blue box to shelter an increasing proportion of CAP support from international scrutiny. Blue-box payments are not, however, fully decoupled; and cross-compliance will not turn them green. The Peace Clause provides limited protection for the blue box, but if this were to lapse in 2003/04 the blue-box provisions would be of little worth. We assert that the EU must engage in radical reform of the CAP, and make truly decoupled and transitory compensation payments the central element of that reform. This could best be facilitated by allocating transferable bonds to the present generation of farm operators, with annual payments made to the bond owner. We set out the essential conditions that must be met for a bond scheme to be put in place, and explore in a very preliminary fashion the budgetary implications.     

New Contractual Relationships in the Agency Worker Market: The Case of the UK's National Health Service

In recent years, there has been a trend towards the negotiation of closer contractual relationships between employers and employment agencies. However, little is known about this change or its likely consequences. In theory, such relationships can benefit employers by lowering fees and also reducing many of the hidden costs associated with the use of agency staff by improving the effectiveness of placement matching. Against this is the suggestion that formal partnerships are unlikely to have a positive impact given the uncertainty of demand for temporary labour and broader tendencies for risk displacement in buyer–supplier networks. In this article, our aim is to explore this matter focusing on recent developments in the UK's National Health Service. We find that new contractual relationships such as framework agreements and master vendor contracts are having mixed effects. While they serve to reduce direct costs for employers in the short term, this has been at the expense of relationship building and improvements in placement matching. These developments are also found to have some potentially negative consequences for the agency workforce itself.     

Service Delivery Networks and Employment Relations at German Airports: Jeopardizing Industrial Peace on the Ground?

In this article, we ask how organizational restructuring towards a network form of service delivery challenges an established form of employment relations in Germany, that is labour–management collaboration. Building on a theoretical discussion of the marketization hypothesis, we develop a structuration perspective on the relationship between network restructuring and labour–management collaboration, which highlights the political economy of inter-firm networks. Empirically, we focus on two major airport authorities in Germany. Our findings show how these authorities at the core of service delivery networks face a strategic trade-off between short-term labour cost reductions and more adversarial employment relations. Apart from coinciding with a deterioration in working conditions for service workers, the handling of this trade-off depends on managers’ and worker representatives’ commitment to collaboration across the network. While unions and works councils initially continued with social partnership-type practices, the more adversarial management practices for enacting the network restructuring cause a fragmentation on the workers’ side and increase the conflict potential. We conclude that the agency of management and worker representatives in the enactment of inter-firm networks oscillates between more partnership-like and more conflictive practices, which turn the network restructuring into a political process with divergent outcomes for employment relations.     

Off the Waterfront: The Long‐Run Impact of Technological Change on Dockworkers

We investigate how individual workers and local labour markets adjust over a long time period to a discrete and plausibly exogenous technological shock, namely the introduction of containerization in the UK port industry. This technology, which was introduced rapidly between the mid‐1960s and the late‐1970s, had dramatic consequences for specific occupations within the port industry. Using longitudinal micro‐census data, we follow dockworkers over a 40‐year period and examine the long‐run consequences of containerization for patterns of employment, migration and mortality. The results show that the job guarantees negotiated by the unions protected dockworkers' employment until the guarantees were removed in 1989. A matched comparison of workers in comparable unskilled occupations reveals that, even after job guarantees were removed, dockworkers did not fare worse than the comparison group in terms of their labour market outcomes. Our results suggest that job guarantees provided a safety net which reduced the cost to workers of sudden technological change.     

Price and market policy for agriculture

The focus of this policy assessment is on the recent history of regulatory measures in market-oriented economies where the dominating triad of problems is stablisation, farm income support and market surplusses. Alternative forms of intervention are reviewed with respect to their impact on domestic supply and demand, international trade, farm income and labour, and finally how they cope with the process of change in agriculture. The author concludes that stabilisation policies in agriculture are not suitable for perishables where they can easily become a burden for consumers and governments alike.     

The kill programme: an ethnographic study of ‘dirty work’ in a slaughterhouse

It has been argued that ‘dirty work’ is characterised by strong occupational and workgroup cultures. This literature has mainly focused on direct workers, but this article largely attends to indirect ‘dirty’ workers, specifically meat inspectors, through ethnographic research conducted in a UK slaughterhouse. Four arguments are developed; the first is that ‘dirty workers’ may not all display group cohesiveness; indeed, individualisation may be more evident depending upon the technology used, internationalisation and employment conditions. Second, there is complexity and diversity within ‘dirty work’ and even single occupations can contain considerable variety, rendering generalisations problematic. Third, we argue that much greater attention needs to be given to the wider contextual issues affecting ‘dirty work’, specifically changing labour markets, itinerant labour, economic conditions and technologies. Finally, we argue that stigmatised work may become more so if it is equated with the low wage economy and/or undercutting conditions of employment through exploiting migrant labour.     

Disentangling the consensus frame of food security: The case of the EU Common Agricultural Policy reform debate

This article addresses which food security frames can be identified in the Common Agricultural Policy (CAP) post-2013 reform process, and which actors deploy particular food security frames. The concept of frames refers to relatively distinct and coherent sets of meaning attributed to a concept, such as food security. The article shows that in the European Union (EU) food security is a consensus frame which can be broken down in six conflicting and overlapping sub-frames and which has complicated the debates about the future of the CAP. We demonstrate that during the CAP-reform debates of 2009–2012 a variety of food security arguments were deployed by a broad range of stakeholders, who attached different meanings and made different claims about the relationship between the CAP and food security. Inductive frame analysis reveals that the consensus frame of food security can be broken down into six conflicting and overlapping sub-frames: (1) the productionist frame, (2) the environmental frame, (3) the development frame, (4) the free trade frame, (5) the regional frame, and (6) the food sovereignty frame. Each of these frames was invoked by a specific group of stakeholders, whereby the productionist and environmental frames were deployed most often. The European Commission, meanwhile, invoked various frames at the same time in its communications. As a result of these various framings of the relationship between the CAP and food security, a clear political vision on this relationship is lacking. We conclude that politicians and policymakers may need to develop a coherent vision on what food security entails, and on how the CAP could contribute to both European and global food security.     

Long‐Run Patterns of Labour Market Polarization: Evidence from German Micro Data

The past four decades have witnessed dramatic changes in the structure of employment. In particular, the rapid increase in computational power has led to large‐scale reductions in employment in jobs that can be described as intensive in routine tasks. These jobs have been shown to be concentrated in middle‐skill occupations. A large literature on labour market polarization characterizes and measures these processes at an aggregate level. However, to date, there is little information regarding the individual worker adjustment processes related to routine‐biased technological change. Using an administrative panel dataset for Germany, we follow workers over an extended period of time and provide evidence of both the short‐term adjustment process and medium‐run effects of routine task‐intensive job loss at an individual level. We initially demonstrate a marked, and steady, shift in employment away from routine, middle‐skill, occupations. In subsequent analysis, we demonstrate how exposure to jobs with higher routine task content is associated with a reduced likelihood of being in employment in both the short term (after one year) and medium term (five years). This employment penalty to routineness of work has increased over the past four decades. More generally, we demonstrate that routine task work is associated with reduced job stability and more likelihood of experiencing periods of unemployment. However, these negative effects of routine work appear to be concentrated in increased employment to employment, and employment to unemployment transitions rather than longer periods of unemployment.     

The two dimensions of policy impacts on economic cohesion: Concept and illustration for the CAP

Given the growing importance of cohesion policy within the European Union (EU) during the last two decades, public and scientific interest in the role of EU policies for regional disparities has risen continuously. Recent empirical studies on the impacts of the Common Agricultural Policy (CAP) on economic cohesion have been strikingly diverse in their principal findings. Whereas some studies suggest positive overall effects on economic cohesion, others stress exactly the opposite. One major reason for the ambiguous results is that a single agreed-upon measure of economic cohesion is lacking. We propose a concept that distinguishes between two dimensions of policy impacts on economic cohesion: (i) the redistributive impact at a defined period of time and (ii) the change of the redistributive impact over time. The first dimension addresses the question whether a policy makes the distribution of a target variable, e.g., income, more equal or unequal at one point of time. The second dimension covers the impact of the policy on the disparity of the same variable over time, i.e., the impact on convergence. An empirical illustration of the concept for 13 NUTS 1 regions in Germany over the period 1991–2009 reveals that the two policy impacts of the CAP are partly contradictory for the two dimensions. It is shown that the CAP fosters economic cohesion by reducing regional disparities in each individual year. With regard to redistributive impacts over time, we find that CAP transfers leave income convergence largely unaffected for society as a whole. Within the agricultural sector, it leads to a convergence of receipts per farm whereas it induces a divergence of farm receipts per hectare.     

Instruments of adjustment in recession: The case of R and D personnel

This paper examines the implications for the management of the stock of labour under recession conditions. First a labour market model which contrasts that model with a 'normal' commodity market is developed. A central feature of a labour market model is that it is characterised by wage fix-employment flex policies due in no small part to the 'peculiarities' of the commodity labour. Secondly, we examine how following falls in revenues, wages and employment are brought back into alignment with product market conditions. We find that policies on the management of labour under these conditions are product market driven but with attention being paid to both objective business variables, such as markets, products, revenues, labour costs and productivity and more subjective elements such as the firm's 'reputation' as a 'good' employer. These two possibly conflicting elements are reconciled by policies using 'instruments of adjustment' to reduce and restructure the labour stock while holding wage levels relatively fixed.     

Dental Hygiene Regulation and Access to Oral Healthcare: Assessing the Variation across the US States

Regulations in many US states prevent dental hygienists (DHs) from fulfilling their potential to improve oral healthcare. Wing et al. found that stringent practice regulations lower DH wages and reduce access to care. We add licensure regulations to the analysis and estimate the simultaneous effect of licensure and practice restrictions on the DH labour market and access to care. The results are consistent with licensure restrictions reducing employment, practice restrictions reducing wages, and wage and employment rates jointly influencing the prevalence of dental office visits. These results suggest that in order to significantly improve access to oral healthcare, states need to consider how their entry and practice regulations interact to influence outcomes.     

Agriculture in the EEC taking stock

The focus of this assessment is the European Community's ‘Stocktaking of the Common Agricultural Policy’. While the CAP has attracted considerable scrutiny and controversy, the Stocktaking represents the most authoritative review of agricultural policy from within the EEC bureaucracy. The authors evaluate first the extent to which the Stocktaking's own analysis is a fair reflection of achievements under the objectives which the CAP has set for itself. Second, they ask whether the proposals for policy reform advocated in the Stocktaking are appropriate. They conclude that the Stocktaking's proposals — and their subsequent interpretation within the EEC — are not adequate to tackle the problems facing EEC agriculture.     

Short Notice,Big Difference? The Effect of Temporary Employment on Firm Competitiveness across Sectors

This article is one of the first to examine how the use of fixed‐term employment contracts (FTCs) affects firm competitiveness (i.e. productivity, wages and profits) while controlling for key econometric issues such as time‐invariant unobserved workplace characteristics, endogeneity and state dependence. We apply dynamic panel data estimation techniques to detailed Belgian linked employer–employee data covering all years from 1999 to 2010. Results show that the effects of FTCs on firm competitiveness vary across sectors: while temporary employment is found (at the 10 per cent significance level) to enhance productivity and profits in (labour‐intensive) services, this is not the case in manufacturing and construction.     

Training and Labour Market Flexibility: Is There a Trade-off?

This paper explores the nexus between work-related training and labour market 'flexibility' (which we proxy by contract type, part-time employment and lack of union coverage), using the first five waves of the British Household Panel Survey (BHPS) conducted over the period 1991–5. Our results show that workers on short-term employment contracts, who are working part-time or are not covered by a union collective agreement, are significantly less likely to be involved in any work-related training to improve or increase their skills. These findings suggest that there is a trade-off between expanding the more marginal forms of employment and expanding the proportion of the work-force getting work-related training.     

Financialization and the rise of atypical work

The current literature on financialization and the labour process focuses disproportionately on how corporate financialization induces the use of atypical work and largely overlooks the role of household financialization. This paper presents several mechanisms through which household debt and pension fund financialization increase the financial insecurity of employees, which, in turn, can curb their resistance to accepting such work contracts. To assess our arguments, we estimate the effects of corporate and household financialization on involuntary part-time and temporary employment, using a panel dataset of OECD economies. Our findings provide robust support that financialization increases significantly non-standard employment rates for the total workforce and women, but less for older employees.