Well functioning factor markets are a crucial condition for the
competitiveness and growth of agriculture and for rural
development. Rural labour market For the past century there has
been an important restructuring of the economies in Europe and
with it a reallocation of labour and other factors. An important
element of this has been an outflow of labour from agriculture.
The creation of the EU and the introduction of the CAP has
affected this process but not halted it. In this process, the
functioning of rural labour markets are extremely important as
they will determine the allocation of labour across different
economic activities, and as such, affect rural incomes and
development. The integration of rural areas in general labour
markets can contribute importantly to rural household incomes
and to the competitiveness of farms and the agricultural sector
as a whole. However, studies also show that, in many regions,
such markets do not work perfectly and, moreover, that it is
crucial to take into account loc