Estimating the Long-Run Supply and Demand for Agricultural Labour in the UK

Posted: 25 Jul 2000

See all articles by Kelvin G. Balcombe

Kelvin G. Balcombe

University of Reading - School of Agriculture, Policy & Development - Department of Agricultural and Food Economics

A. Prakash

Imperial College London - Imperial College of Science, Technology and Medicine

Abstract

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

Balcombe, Kelvin G. and Prakash, A., Estimating the Long-Run Supply and Demand for Agricultural Labour in the UK. Available at SSRN: https://ssrn.com/abstract=231740

Kelvin G. Balcombe (Contact Author)

University of Reading - School of Agriculture, Policy & Development - Department of Agricultural and Food Economics ( email )

Reading, RG6 6AH
United Kingdom

A. Prakash

Imperial College London - Imperial College of Science, Technology and Medicine

Exhibition Road
London, SW7 2AZ
United Kingdom

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