Do different types of Common Agricultural Policy subsidies promote farm employment?

This paper investigates the impact of Common Agricultural Policy (CAP) subsidies on farm employment in Hungary and Slovenia. Econometric models were estimated separately for total labor, family hired labor. We find that and, within these, Pillar I subsidies, have positive effect paid labor Irrespective country type employment, is significantly positively associated with size. Mixed results are found II investment subsidies. Rural development measures agri-environmental less favored area particularly important Slovenia, but not neither Hungary. The control regional market variables mixed between analyzed countries. A strong link main different types CAP size suggests importance maintaining job creation young unemployed, land use policy. might explain farmers political demand status quo only minor subsidy changes, raising society awareness monitoring effective efficient