Abstract
The study examines the effects of Common Agricultural Program (CAP) assistance on the potential job creation in rural areas of Poland using the FADN annual observations from 2004 to 2009. Positive effects on hired paid labor (the measure of job creation) are associated with crop and LFA subsidies, two types of targeted subsidies, and decoupled payments available to all farms. The programs appear to have the expected result and the positive effects on job creation may help to slow the depopulation of rural areas. However, within agriculture, horticultural farms outperform all other types in terms of hired paid labor, while the primary agricultural area of Wielkopolska-Śląsk also spends more on hire paid labor than other regions. Future analysis with disaggregated data is necessary to better measure the CAP effects on hired paid labor implying job creation.
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