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Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement

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  • Ifft, Jennifer
  • Jodlowski, Margaret

Abstract

We study the impact of US immigration enforcement through a locally-implemented program known as 287(g) on agriculture using confidential farm-level data and farm census data. We address the endogeneity of program participation by using pre-program county jail occupancy as an instrument. We provide evidence that the agricultural sector experienced limited endogenous technical change in response to the negative labor supply shock caused by increased immigration enforcement. Fuel expenses increased, consistent with predictions of an increase in automated technology by models of endogenous technical change. However, a corresponding decline in agricultural acres and employment and an increase in labor expenditure suggests capital-labor substitution was insufficient to fully offset the impact of the shock.

Suggested Citation

  • Ifft, Jennifer & Jodlowski, Margaret, 2022. "Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement," Labour Economics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:labeco:v:78:y:2022:i:c:s092753712200094x
    DOI: 10.1016/j.labeco.2022.102203
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    1. Wang, Sun Ling & Loduca, Natalie, 2023. "The changing values of the U.S. farm workers’ legal status and labor quality in the U.S. farm workforce," 2024 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2024, San Antonio, Texas 339078, Agricultural and Applied Economics Association.
    2. Kuroiwa, Kenichi & Chellattan Veettil, Prakashan & Gupta, Ishika, 2024. "Labor Scarcity and Technology Adoption in Agriculture: Evidence from Rural India during the COVID-19 Pandemic," 2024 Annual Meeting, July 28-30, New Orleans, LA 343851, Agricultural and Applied Economics Association.
    3. repec:ags:aaea22:335611 is not listed on IDEAS
    4. Shrestha, Samyam, 2024. "Seasonal Labor Shortage and the Production and Trade of Labor-Intensive Goods: Evidence from U.S. Agriculture," 2024 Annual Meeting, July 28-30, New Orleans, LA 343996, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Immigration enforcement; Agricultural labor markets; Farm workers;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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