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Firm Size, Technical Change, and Wages in the Pork Sector, 1990-2005

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Author Info

  • Yu, Li
  • Hurley, Terrance M.
  • Kliebenstein, James B.
  • Orazem, Peter F.

Abstract

This study investigates worker shares of the returns to scale and returns to technology adoption on U.S. hog farms. The wage analysis controls for a matching process by which workers are linked to farms of different sizes and technology uses. Using four surveys of employees on hog farms collected in 1990, 1995, 2000, and 2005, we find persistent large wage premiums are paid to workers on larger farms and on technologically advanced farms that remain large and statistically significant even after controlling for differences in observable worker attributes and in the observed sorting process of workers across farms.

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File URL: http://purl.umn.edu/134278
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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 37 (2012)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:jlaare:134278

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Web page: http://waeaonline.org/
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Related research

Keywords: economies of scale; firm size; hogs; propensity score matching; technology; wage premiums; Labor and Human Capital; Research and Development/Tech Change/Emerging Technologies;

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References

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  1. James Kliebenstein & Peter F. Orazem, 1999. "The Structure of Wages and Benefits in the U.S. Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 144-163.
  2. Dehejia, R.H. & Wahba, S., 1998. "Propensity Score Matching Methods for Non-Experimental Causal Studies," Discussion Papers 1998_02, Columbia University, Department of Economics.
  3. John Haltiwanger & Marilyn E. Manser & Robert Topel, 1998. "Labor Statistics Measurement Issues," NBER Books, National Bureau of Economic Research, Inc, number halt98-1.
  4. Timothy Dunne & Lucia Foster & John Haltiwanger & Kenneth R. Troske, 2004. "Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 397-430, April.
  5. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
  6. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
  7. Stephanie Lluis, . "Endogenous Choice of Firm Size and the Sturcture of Wages: A Comparison of Canada and the United States," Working Papers 0203, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
  8. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214 Elsevier.
  9. Terrance M. HURLEY & James Kliebenstein & Peter F. ORAZEM, 1996. "Structure Of Wages And Benefits In The U.S. Pork Industry," Staff Papers 283, Iowa State University Department of Economics.
  10. McBride, William D. & Key, Nigel D., 2003. "Economic And Structural Relationships In U.S. Hog Production," Agricultural Economics Reports 33971, United States Department of Agriculture, Economic Research Service.
  11. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  12. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-59, October.
  13. Dunne, Timothy & Schmitz, James A, Jr, 1995. "Wages, Employment Structure and Employer Size-Wage Premia: Their Relationship to Advanced-Technology Usage at US Manufacturing Establishments," Economica, London School of Economics and Political Science, vol. 62(245), pages 89-107, February.
  14. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
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Cited by:
  1. Even, William E. & Macpherson, David A., 2009. "Is Bigger Still Better? The Decline of the Wage Premium at Large Firms," IZA Discussion Papers 4082, Institute for the Study of Labor (IZA).

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