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The Effect of Legalization on Wages and Health Insurance: Evidence from the National Agricultural Workers Survey

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

Abstract

We estimate the effect of legalization on the wages and benefits of foreign-born agricultural workers. Using data from the National Agricultural Workers Survey, we employ propensity score matching techniques to compare legal permanent residents in the United States with an appropriate control group of undocumented workers. Consistent with previous findings, we show that becoming a legal permanent resident results in a modest wage gain of about 5%. Further, we provide novel evidence that, in addition to higher wages, legalization leads to a significantly higher likelihood of receiving some other form of compensation, such as employer-sponsored health insurance or a monetary bonus.

Suggested Citation

  • Amy M. G. Kandilov & Ivan T. Kandilov, 2010. "The Effect of Legalization on Wages and Health Insurance: Evidence from the National Agricultural Workers Survey," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(4), pages 604-623.
    • Handle: RePEc:oup:apecpp:v:32:y:2010:i:4:p:604-623.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppq022
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    Cited by:

    1. Grace Melo & Gregory Colson & Octavio A. Ramirez, 2014. "Hispanic American Opinions toward Immigration and Immigration Policy Reform Proposals," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 604-622.
    2. Claire E. Altman & Colleen M. Heflin & Chaegyung Jun & James D. Bachmeier, 2021. "Material Hardship Among Immigrants in the United States: Variation by Citizenship, Legal Status, and Origin in the 1996–2008 SIPP," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(3), pages 363-399, June.
    3. Bradford L. Barham & Ana P. Melo & Thomas Hertz, 2020. "Earnings, Wages, and Poverty Outcomes of US Farm and Low‐Skill Workers," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 307-334, June.
    4. Sampaio, Breno Ramos & Sampaio, Gustavo Ramos & Sampaio, Yony, 2012. "On Estimating The Effects of Legalization: Do Agricultural Workers Really Benefit?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126858, International Association of Agricultural Economists.
    5. Chang, Jieun, 2021. "Broadband technology opportunities program public computer center grants and residential broadband adoption," Telecommunications Policy, Elsevier, vol. 45(8).
    6. Amy M. G. Kandilov & Ivan T. Kandilov, 2022. "The impact of the Affordable Care Act Medicaid expansions on agricultural workers' health insurance coverage, medical care utilization, and labor supply," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 1026-1049, May.
    7. Ifft, Jennifer & Jodlowski, Margaret, 2016. "Is ICE Freezing US Agriculture? The Impact of Local Immigration Enforcement on Farm Profitability and Structure," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235950, Agricultural and Applied Economics Association.
    8. Hogan, Chellie A. & Walters, Lurleen M. & Williams, Brian R., 2018. "Evaluating the Effects of Legalization on Farmworker Wages in the Crop Sector," 2018 Annual Meeting, August 5-7, Washington, D.C. 274167, Agricultural and Applied Economics Association.
    9. Jeff Luckstead & Rodolfo M. Nayga & Heather A. Snell, 2023. "US domestic workers' willingness to accept agricultural field jobs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1693-1715, September.
    10. Kandilov, Amy & Kandilov, Ivan T., 2018. "The Impact of the Minimum Wage on Health Insurance: Evidence from Agricultural Workers," 2018 Annual Meeting, August 5-7, Washington, D.C. 274175, Agricultural and Applied Economics Association.
    11. Lofstrom, Magnus & Hill, Laura E. & Hayes, Joseph, 2010. "Did Employer Sanctions Lose Their Bite? Labor Market Effects of Immigrant Legalization," IZA Discussion Papers 4972, Institute of Labor Economics (IZA).
    12. 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.
    13. An Li & Jeffrey J. Reimer, 2021. "The US Market for Agricultural Labor: Evidence from the National Agricultural Workers Survey," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1125-1139, September.

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