The Origins and Early Impact of the Minimum Wage in Agriculture

Gowers, Robin; Hatton, Timothy J.

doi:10.1111/1468-0289.00046

Cited by 37 publications

(8 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Similar to previous findings regarding the agricultural sector [42,43], this is likely due to significant differences between restaurants and agriculture: agricultural goods from geographically separate locations are substitutes to a much greater extent than restaurants over similar distances. While we cannot estimate the overall impact on DM employment due to the small sample size and the fact that this study is prospective, seven out of the 18 producers did indicate that they have already or will be reducing labor hours in the coming years.…”

Section: Discussionsupporting

confidence: 85%

“…Most of these studies focused on specific industries that employ low-wage workers, especially restaurants and hotels. In the agricultural sector, Gowers and Hatton [42] found that establishing a MW reduced poverty among farmworkers, and reduced farm employment. Moretti and Perloff [43] found that an increase in the federal MW increases the wage of hourly farmworkers, but not piece-rate workers.…”

Section: Impact Of Minimum Wage Changesmentioning

confidence: 99%

See 1 more Smart Citation

Implications of the 2016 Oregon Minimum Wage Increase for Direct Market Farmers, Farmworkers, and Communities

et al. 2018

View full text Add to dashboard Cite

Abstract:We conducted interviews with 18 direct market (DM) farmers to explore the implications of the Oregon minimum wage (MW) increase for the state's DM agricultural sector. How, if at all, will DM farms in the Willamette Valley (OR, USA) adjust their production and marketing practices in response to the MW increase? How will these adjustments affect DM farm viability, farmworkers, the environment, and the communities in which the farms are embedded? This region has a vibrant food system with many small-to-mid sized, diversified farms that sell through direct and intermediated marketing channels. The diversified production and marketing practices of these DM farmers are labor intensive and, in many respects, environmentally friendly. These practices result in relatively high costs and the farmers' ability to respond by increasing prices is constrained by mainstream retail prices. Most growers reported that they will adjust to the MW increase by reducing their production and marketing costs with a decrease in total labor hours being an important strategy. This study, while small and exploratory, is the first in Oregon (and perhaps nationally) to collect empirical farm-level data about how DM farms will adjust to a MW increase. It sets the stage for future research.

show abstract

Section: Discussionsupporting

confidence: 85%

Section: Impact Of Minimum Wage Changesmentioning

confidence: 99%

Implications of the 2016 Oregon Minimum Wage Increase for Direct Market Farmers, Farmworkers, and Communities

et al. 2018

View full text Add to dashboard Cite

show abstract

“…Subsequent work also finds increases in wages and decreases in employment in the farm sector [22][23][24]. Gilroy (1982) confirms this basic result using proprietary federal data on coverage [24].…”

Section: Minimum Wage and Us Agricultural Labor Marketsmentioning

confidence: 89%

“…These results are qualitatively similar to findings pertaining to the introduction of minimum wages in English and Welsh agriculture in 1917 (repealed in 1921 and reinstated in 1924). Gowers and Hatton (1997), for example, find that wage rates within agriculture increased substantially, while employment fell with reduced poverty to workers retaining their jobs [22].…”

Section: Minimum Wage and Us Agricultural Labor Marketsmentioning

confidence: 99%

Do Minimum Wage Laws Affect Those Who Are Not Covered? Evidence From Agricultural and Non-Agricultural Workers

Fan

Pena

2019

SSRN Journal

View full text Add to dashboard Cite

Some employers are not obligated to pay at least minimum wages to all employees. U.S. farm employers comprise one of these groups. Employees of large farms and H-2A workers (lawfully admitted, nonimmigrant workers performing temporary or seasonal agricultural work) are protected by minimum wage legislation, while some migrant workers (often those paid piece rates) are exempt. U.S. agriculture also is characterized by a large percentage of unauthorized workers who may or may not earn above minimum wage. Following insights from dual labor market theory and from theories of the signaling capacity of the minimum wage, we compare labor market outcomes in the agricultural sector (where minimum wage coverage is limited) to low wage/skill non-agricultural sectors (where minimum wage coverage is more complete) nationally using data from the Current Population Survey. We then extend our analysis to a detailed state-level case study of agricultural workers in California using a representative survey of employed farm workers. Results suggest wage increases for covered workers that exceed those for uncovered workers, but insignificant differences in hours worked. This is the first study to our knowledge to examine the impacts of minimum wage coverage on agricultural workers relative to other workers for the U.S.

show abstract

“…Similar findings are reported for the effects of the non-agricultural British Wages Councils in the 1970s and 1980s by Dickens et al, (1994) and . The only other study of minimum wages in UK agriculture over the post-war period of which we are aware (Gowers and Hatton (1994) provide an analysis of the inter-war period), is by Lund et af. (1982).…”

Section: A Theoretical Framework For the Analysis Of The Effects Of Mmentioning

confidence: 99%

The Effect of Minimum Wages on Uk Agriculture

Dickens

Machin

Manning

et al. 1995

J Agricultural Economics

View full text Add to dashboard Cite

agriculture isthe only sector in the UK economy covered by any form of minimum wage legislation. However, the recent denunciation of an ILO convention covering minimum wages in agriculture has paved the way for the abolition of the Agricultural Wages Boards. This paper investigates the impact of the system of minimum wages on the level and structure of earnings and employment in agriculture. On wages, our main conclusion is that the minimum wages set by the Agricultural Wages Boards are important determinants of the average level and distribution. of earnings in UK agriculture. On employment, our main conclusion is that there is no evidence tnat minimum wages have reduced the level of employment in agriculture. If anything, our estimates imply a weak positive, though statistically insignificant, impact of minimum wages on employment. This seems to be true when we disaggregate by sex andskill.

show abstract

The Origins and Early Impact of the Minimum Wage in Agriculture

Cited by 37 publications

References 12 publications

Implications of the 2016 Oregon Minimum Wage Increase for Direct Market Farmers, Farmworkers, and Communities

Implications of the 2016 Oregon Minimum Wage Increase for Direct Market Farmers, Farmworkers, and Communities

Do Minimum Wage Laws Affect Those Who Are Not Covered? Evidence From Agricultural and Non-Agricultural Workers

The Effect of Minimum Wages on Uk Agriculture

Contact Info

Product

Resources

About