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Testing for Disequilibrium in the Hired Farm Labor Market

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  • James A. Duffield
  • Robert Coltrane

Abstract

Producers of labor-intensive crops fear labor shortages if sanctions under the Immigration Reform and Control Act (IRCA) of 1986 are strictly enforced. They argue that special government programs are necessary to insure an adequate labor supply. On the other hand, farm labor advocates argue that such policies create an oversupply of workers and depress wages. A model of the farm labor market was tested for disequilibrium using cusum and cusum squares criteria. Results give no evidence that the hired farm labor market is chronically out of balance or unable to make equilibrium adjustments.

Suggested Citation

  • James A. Duffield & Robert Coltrane, 1992. "Testing for Disequilibrium in the Hired Farm Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 412-420.
    • Handle: RePEc:oup:ajagec:v:74:y:1992:i:2:p:412-420.
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    File URL: http://hdl.handle.net/10.2307/1242495
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    Cited by:

    1. Tugrul Temel & Edward M. Tavernier, 2001. "Are U.S. Farm Wages Really Depressing? Evidence from the Northeast and South," The Review of Regional Studies, Southern Regional Science Association, vol. 29(3), pages 212-225, Winter.
    2. Zahniser, Steven & Hertz, Thomas & Rimmer, Maureen T. & Dixon, Peter B., 2012. "The Potential Impact of Changes in Immigration Policy on U.S. Agriculture and the Market for Hired Farm Labor: A Simulation Analysis," Economic Research Report 262231, United States Department of Agriculture, Economic Research Service.
    3. Richards, Timothy J., 2018. "Immigration Reform and Farm Labor Markets," 2018 Annual Meeting, August 5-7, Washington, D.C. 274165, Agricultural and Applied Economics Association.
    4. Marcelo Castillo & Diane Charlton, 2023. "Housing booms and H‐2A agricultural guest worker employment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 709-731, March.
    5. Thilmany, Dawn D. & Espey, Molly, 1998. "Farm Labor Demand And Supply: A Meta-Analysis Of Wage Elasticities," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21001, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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