Berlinschi, Ruxanda; Van Herck, Kristine; Swinnen, … - European Association of Agricultural Economists - EAAE - 2011
subsidies. We argue that one explanation to this puzzle is the positive impact of subsidies on the education levels of farmers …’ revenues, subsidies increase investment in education. If more educated children are less willing to become farmers, one long … term effect of subsidies is to reduce labor supply in the agricultural sector. We provide a theoretical model and some …