Improving agricultural performance for the working poverty reduction in the European union

Abstract

The main objective of the paper is to highlight the impact of agricultural performance on working poverty in the EU countries, in the 2008–2013 period, for identifying some measures that need to be taken to increase the agricultural performance so that the in-work poverty reduces. The comparative analysis shows that agricultural performance, according to the agricultural indicators analysed and the phenomenon of working poverty vary significantly across the EU countries. The correlation and regression analysis results suggest that the high level of employment in agriculture in some EU countries can be mainly explained by the small scale agriculture, a high share of subsistence holdings and a low agricultural labour productivity. The results of the multiple regression analysis highlight that working poverty at the EU level is influenced positively by the employment in agriculture, and is influenced negatively by the economic size farm and land productivity. Moreover, the results show large cross-country differences in terms of agricultural performance-working poverty link, fact which emphasizes the need to take specificactions to improve efficiency of the EU agricultural sector for reducing the working poverty. The findings of the study can be useful for the policymakers to formulate policies for a decent and productive employment within a sustainable development of agriculture.