The share of agricultural workers who migrate within the United States has fallen by approximately 60% since the late 1990s. To explain this decline in the migration rate, we estimate annual migration-choice models using data from the National Agricultural Workers Survey for 1989-2009. On average over the last decade of the sample, one-third of the fall in the migration rate was due to changes in the demographic composition of the workforce, while twothirds was due to changes in coefficients ("structural" change). In some years, demographic changes were responsible for half of the overall change.JEL: J43, J61, J82, Q19
U.S. farmworkers primarily are paid either on a piecerate or on a timerate basis. This article studies relationships among wage contracts, legal status, and poverty using a representative survey of employed farmworkers, which includes detailed information on legal status, including whether a worker is illegal. Results indicate that while piecerate workers earn more per hour on average, they work fewer hours and face greater poverty risk than their timerate counterparts. Furthermore, foreign-born workers, especially those who are undocumented, are overrepresented in piecerate positions, and analysis shows that the effect of piecerate pay on poverty is positive and correlated with being foreign-born.
This article considers how legal status affects agricultural labor market outcomes and food prices. Using both propensity score matching and treatment effects regression analysis, undocumented immigrants are found to make 5 to 6% less on average and to have significantly lower probabilities of aid program participation than their documented immigrant counterparts. Magnitudes of differences depend on the permanence of legal status, with naturalized citizens and green card holders benefiting more from their legal status than those with other forms of work authorization. Results suggest that a new program granting amnesty to undocumented immigrant farmworkers, reminiscent of the Seasonal Agricultural Worker program under the Immigration Reform and Control Act, would have minimal effects on farmworker outcomes especially in the short term, and that if employers pass labor cost increases to consumers via food prices, effects on consumers would be similarly minimal.
Recessions typically lead to excess supply in nonagricultural labor markets. However, a major recession, like the Great Recession, has different effects in the seasonal agriculture labor market. During such recession, hourly earnings of workers, the probability that workers receive bonuses, and employed workers' weekly hours rise. These results are consistent with a large reduction in immigrant labor supply during a major recession.Direct and indirect evidence on immigration supports this conclusion.
Effects of the Great Recession on the U.S. Agricultural Labor Market
AbstractRecessions typically lead to excess supply in nonagricultural labor markets. However, a major recession, like the Great Recession, has different effects in the seasonal agriculture labor market.During such recession, hourly earnings of workers, the probability that workers receive bonuses, and employed workers' weekly hours rise. These results are consistent with a large reduction in immigrant labor supply during a major recession. Direct and indirect evidence on immigration supports this conclusion.
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