Agricultural employment in Spain and New Keynesian Economics

Autores UPV
Año
CONGRESO Agricultural employment in Spain and New Keynesian Economics

Abstract

Our research examines the agricultural labour market from the perspective of new Keynesian economics. Our aim is to verify that total gross output, total factor productivity, and real wages act as determinants of employment levels in Spanish agriculture. Three structural econometric models were estimated from census data for the period 1998-2013. This was a period of profound economic and social change and two distinct sub-periods are compared: 1998-2007 (a period of economic boom) and 2008-2013 (a period recession). The empirical evidence is consistent with neo-Keynesian theoretical posits, albeit with certain qualifications derived from the specifically rural nature of the evidence. The results show a negative relationship between employment and productivity and wages, which intensified during the recession.