Agricultural Labor Adjustments in Transition Countries: The Role of Migration and Impact on Poverty*

T here are several remarkable aspects of the changes in agricultural employment during in Central and Eastern Europe (CEE) and the Former Soviet Union (FSU) (henceforth referred to as transition countries). First, had a dramatic effect on agricultural employment in many countries: labor use in agriculture changed more than 50% in several countries during the first decade (figure 1). Second, the changes were very diverse. Labor use in agriculture declined by half in countries such as the Czech Republic, Estonia, Slovakia, and Hungary; and increased by more than 50% in Kyrgyzstan, Georgia, and Armenia.' Third, not only were there vastly different adjustments between countries, but also within countries. In Poland, for example, labor outflow was around 50% in some regions, while agricultural employment increased in other regions. Fourth, in many cases, these variations in adjustment did not contribute to a convergence of agricultural labor use, but rather to a divergence. The largest declines occurred in countries and regions where labor use and intensity were already relatively low (such as in Central Europe). Labor use increased where agriculture employment was relatively high (such as in Southeastern Europe or the Caucasus).2 By any standard or historical reference, these are remarkable changes. Understanding the drivers of these changes is important for their own sake. These dramatic changes resulted in large adjustments for the people affected