| The process of change in the Common Agricultural Policy (CAP) from trade and market distorting measures to more neutral interventions has been long, but in this process the 2003 reform (the so-called Fischler reform) has been the most important step, leading to a more decoupled, and hence less market distorting, support (Oecd, 2004) and introducing the fully decoupled Single Farm Payment Scheme (SFP). In this paper, we estimate a model of operators’ off-farm labour participation from a panel of Italian COP farms drawn from the FADN. To this purpose we use a random effects probit model, thus controlling for unobserved heterogeneity. The results suggest that the effects of the reform on off-farm labour participation, if any, are weak. No variable directly... |
