Assessing the Causal Effect of Decoupled Payments on farm labour in Tuscany Using Propensity Score Methods
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We analyze the impact on employment of the 2003/2005 CAP reform (decoupled payments) in
Tuscany farms. We use data coming from census (2000 and 2010) and administrative archives,
and apply propensity score-based methods to evaluate the average treatment effect of pay-
ments on employment-related outcomes, taking into account that the assignment mechanism
of payments was non-random. We further investigate impact heterogeneity using a generalized
propensity-score matching methodology focussing on a subgroup of farms. Results show that
there exists some effect of the payments on employment and that the impact is heterogeneous
over the different amounts of payments.