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Efficiency Wages, Deferred Payments, and Direct Incentives in Agriculture

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  • Enrico Moretti
  • Jeffrey M. Perloff

Abstract

Empirical evidence from agricultural labor markets is consistent with efficiency-wage theory and inconsistent with several alternative explanations. According to this theory, the higher wage or deferred payment (benefits) that direct-hire growers pay relative to that of farm labor contractors is an efficiency wage. Growers use this extra compensation to lower their monitoring expenses and reduce shirking by workers. Copyright 2002, Oxford University Press.

Suggested Citation

  • Enrico Moretti & Jeffrey M. Perloff, 2002. "Efficiency Wages, Deferred Payments, and Direct Incentives in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1144-1155.
    • Handle: RePEc:oup:ajagec:v:84:y:2002:i:4:p:1144-1155
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    Cited by:

    1. Basu, Arnab K. & Chau, Nancy H. & Park, Brian, 2022. "Rethinking border enforcement, permanent and circular migration," Economic Modelling, Elsevier, vol. 108(C).
    2. David A. Hennessy, 2007. "Behavioral Incentives, Equilibrium Endemic Disease, and Health Management Policy for Farmed Animals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 698-711.
    3. Guojun He & Jeffrey M. Perloff, 2013. "Does Customer Auditing Help Chinese Workers?," ILR Review, Cornell University, ILR School, vol. 66(2), pages 511-524, April.
    4. Iwai, Nobuyuki & Emerson, Robert D. & Walters, Lurleen M., 2006. "Legal Status and U.S. Farm Wages," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35335, Southern Agricultural Economics Association.
    5. Alexandra E. Hill & Jesse Burkhardt, 2021. "Peers in the Field: The Role of Ability and Gender in Peer Effects among Agricultural Workers," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 790-811, May.
    6. repec:eid:wpaper:27/09 is not listed on IDEAS
    7. Thomas Aronsson & Luca Micheletto, 2021. "Optimal Redistributive Income Taxation and Efficiency Wages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(1), pages 3-32, January.
    8. Timothy J. Richards, 2020. "Income Targeting and Farm Labor Supply," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 419-438, March.
    9. John G. Sessions & Nikolaos Theodoropoulos, 2014. "Tenure, Wage Profiles and Monitoring," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 105-162, Emerald Group Publishing Limited.
    10. Maoyong Fan & Anita Alves Pena & Jeffrey M. Perloff, 2016. "Effects of the Great Recession on the U.S. Agricultural Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1146-1157.
    11. Papps, Kerry L., 2010. "Productivity under Large Pay Increases: Evidence from Professional Baseball," IZA Discussion Papers 5133, Institute of Labor Economics (IZA).
    12. Natalie Chun & Soohyung Lee, 2015. "Bonus compensation and productivity: evidence from Indian manufacturing plant-level data," Journal of Productivity Analysis, Springer, vol. 43(1), pages 47-58, February.
    13. Castillo, Marcelo & Martin, Philip & Rutledge, Zachariah, 2022. "The H-2A Temporary Agricultural Workers Program in 2020," USDA Miscellaneous 329068, United States Department of Agriculture.
    14. Jinsi Liu & Hu Xiang & Shengjiao Zhu & Shixiang Chen, 2024. "Spatial heterogeneity analysis of biased land resource supply policies on housing prices and innovation efficiency," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    15. Pena Anita Alves, 2010. "Legalization and Immigrants in U.S. Agriculture," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-24, February.
    16. Yousef Daoud & Belal Fallah, 2016. "The differential impact of employment in agriculture on wages for rural and non-rural Palestine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    17. Ourania Karakosta & Nikos Tsakiris, 2009. "Indirect Tax Reforms and Public Goods under Imperfect Competition," University of Cyprus Working Papers in Economics 5-2009, University of Cyprus Department of Economics.
    18. Daoud Yousef & Fallah Belal, 2014. "Rural Wage Employment: Is There a Premium for Agriculture?," Working Papers 837, Economic Research Forum, revised Jun 2014.
    19. Castillo, Marcelo & Martin, Philip & Rutledge, Zachariah, 2022. "The H-2A Temporary Agricultural Worker Program in 2020," Economic Information Bulletin 327353, United States Department of Agriculture, Economic Research Service.

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