Structural change and farm labour adjustments in a dualistic farm structure: a simulation study for the region Nitra in southwest Slovakia

This Discussion Paper explores interactions between structural impediments to labour adjustment, specific labour adjustment patterns and the impacts of differing economical and political frames. Based on the agent-based simulation framework AgriPoliS adjusted to the agricultural structure of the region Nitra in southwest Slovakia, we carry out a range of simulation experiments on the possible interplay between off-farm job opportunities for farm operators, growth in other sectors of the economy, and policy impacts. Results show that free movement of labour between sectors leads to strong adjustments in the agricultural labour force and benefits farms with a growth potential. EU Accession and a subsequent decoupling of payments lead farms to stay in business that would have otherwise left the sector. These farms, however, have a different mix of family and hired labour.