Causes of Changes in Agricultural Employment in Slovenia: Evidence from Micro-data.

This paper analyses labour adjustment in and out of agriculture during transition to a market economy. A multinomial logit model is used to determine the factors that affect these processes. The results show that elderly, less educated and full-time employees on a farm are more likely to continue with farming. Inflow of labour into agriculture is largely associated with the unemployment and retirement of farm household members. Age, education and investment in human capital are the key factors that improve the quality, mobility and flexibility of labour, which is crucial for efficient labour adjustment at the micro-level and sec- tor level. Better-educated individuals are more likely to enter into employment in non-agricultural, particularly service, activities. [ABSTRACT FROM AUTHOR]