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The Shadow Value of Legal Status--A Hedonic Analysis of the Earnings of U.S. Farm Workers

Author

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  • Wang, Sun Ling
  • Carroll, Daniel
  • Nehring, Richard
  • McGath, Christopher

Abstract

The purpose of this study is to estimate the shadow price of the legal status of farm workers. A hedonic function in terms of farm work experience, gender, education level, language skill, and legal status is estimated with control variables for employer type, farm work type, as well as other geographical and time variables. The data is drawn from the National Agricultural Workers Survey (NAWS). The preliminary results show that while legal status did contribute significantly to the wage differences it is not the major factor. After taking account of the composition shift in demographic characteristics, the quality adjusted labor prices still doubled in the past two decades.

Suggested Citation

  • Wang, Sun Ling & Carroll, Daniel & Nehring, Richard & McGath, Christopher, 2013. "The Shadow Value of Legal Status--A Hedonic Analysis of the Earnings of U.S. Farm Workers," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149866, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149866
    DOI: 10.22004/ag.econ.149866
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    References listed on IDEAS

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    1. Sabrina Isé & Jeffrey M. Perloff, 1995. "Legal Status and Earnings of Agricultural Workers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 375-386.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Francisco L. Rivera-Batiz, 1999. "Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 91-116.
    4. Philip Martin & Linda Calvin, 2010. "Immigration Reform: What Does It Mean for Agriculture and Rural America?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(2), pages 232-253.
    5. J. Edward Taylor & Dawn Thilmany, 1993. "Worker Turnover, Farm Labor Contractors, and IRCA's Impact on the California Farm Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 350-360.
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    Cited by:

    1. V. Eldon Ball & Richard Nehring & Sun Ling Wang, 2016. "Productivity Growth in U.S. Agriculture: 1948-2013," International Productivity Monitor, Centre for the Study of Living Standards, vol. 30, pages 64-76, Spring.
    2. Eldon V Ball & Sun L Wang & Richard Nehring & Roberto Mosheim, 2016. "Productivity and Economic Growth in U.S. Agriculture: A New Look," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 30-49.

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    Keywords

    Agricultural and Food Policy; Labor and Human Capital;

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