Circular economy and agricultural employment: a panel analysis of EU advanced and emerging economies

Abstract

Using data from 24 European advanced and emerging countries between 2000 and 2020, this paper examines the impacts of circular economy (CE) on agriculture employment (AE) and female employment patterns. Based on the availability of data, the study uses three CE indicators: generation of municipal waste (GMW) per capita, the recycling rate of municipal waste (RRMW), and patents related to recycling and secondary raw materials (PRSRM). To investigate the relationship between CE and AE, as well as CE and female AE, panel cointegration analysis and Granger causality tests are conducted. The results reveal that whereas RRMW, PRSRM and AE are in equilibrium in the long run, increasing waste lowers female attraction to the sector. The study therefore suggests that developing and expanding waste management initiatives and innovation are critical to the growth of agricultural employment and the closing of existing gender gaps. Despite concerns that rising recycling practices may negatively impact employment, our empirical results indicate that CE will create opportunities and increase employment levels. The evidence suggests that promoting CE in agriculture is economically, ecologically, and socially beneficial.