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The minimum wage and seasonal employment: Evidence from the US agricultural sector

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  • Amy M. G. Kandilov
  • Ivan T. Kandilov

Abstract

Nearly 40% of agricultural workers in the United States earn an hourly wage that is within 10% of the prevailing state‐level minimum wage. We evaluate the impact of the minimum wage on farm employment using county‐level data from the United States Census of Agriculture. We employ long‐differences specifications and find evidence of a dynamic, negative effect of the minimum wage on seasonal agricultural employment, but no effect on year‐round agricultural employment. We estimate a long‐run elasticity of total agricultural employment with respect to the minimum wage of about −0.40, which is both statistically and economically significant. Employers’ total expenditures on hired agricultural workers are not affected by the minimum wage. Finally, our analysis suggests that increases in minimum wages may lead to higher capital investment as well as the consolidation of farming operations in the agricultural sector.

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  • Amy M. G. Kandilov & Ivan T. Kandilov, 2020. "The minimum wage and seasonal employment: Evidence from the US agricultural sector," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 612-627, September.
    • Handle: RePEc:bla:jregsc:v:60:y:2020:i:4:p:612-627
    DOI: 10.1111/jors.12474
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    References listed on IDEAS

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    Cited by:

    1. Rutledge, Zach & Richards, Timothy & Martin, Philip, 2023. "Adverse Effect Wage Rates and US Farm Wages," 2024 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2024, San Antonio, Texas 339074, Agricultural and Applied Economics Association.
    2. repec:ags:aaea22:335822 is not listed on IDEAS
    3. Otterby, Dawn & Crawley, Andrew & Gabe, Todd, 2023. "Effects of the Minimum Wage on U.S. County Labor Markets," MPRA Paper 116162, University Library of Munich, Germany.
    4. David Neumark & Peter Shirley, 2022. "Myth or measurement: What does the new minimum wage research say about minimum wages and job loss in the United States?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 384-417, October.
    5. Anita Alves Pena & Bryanna Dixon, 2022. "Pesticide exposure and the physical and economic health of US crop workers," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 2087-2114, December.

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