Estimating the Long-Run Supply and Demand for Agricultural Labour in the UK
Posted: 25 Jul 2000
In this paper we derive supply and demand equations for labour in the UK agricultural sector. Using a cointegrating vector autoregression framework, identifying restrictions from theory are imposed, and the long-run labour supply and demand relationships are estimated. We find a significant elasticity of substitution between labour and the other factors of production. The minimum wage has had a significant negative impact on the level of labour demanded.
Keywords: Agricultural Labour, Labour Supply And Demand, Cointegration, Structural Modelling, Minimum Wage
JEL Classification: Q12
Suggested Citation: Suggested Citation