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Undocumented immigration and the business of farm labor contracting in the USA

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  • Anita Alves Pena

Abstract

Purpose - Farm labor contractors operate as intermediaries between farmworkers and agricultural employers by recruiting and supplying labor to US farms. In a political economy where there are employer sanctions for hiring workers without proper documentation, contractors share risk alongside final employers. Furthermore, contractors may facilitate quick employment matches during time sensitive agricultural tasks such as harvesting. For undocumented workers, using a contractor may decrease uncertainty associated with a foreign labor market and ease language barriers. The purpose of this paper is to examine the current role of labor contractors in delivering immigrant agricultural workers, particularly undocumented workers, to farms. Design/methodology/approach - Determinants of labor contractor use and relationships to final worker outcomes are examined using econometric methods and a large nationally‐representative worker survey that is distinctive in that it distinguishes legal status. Findings - Undocumented farmworkers are shown to be more likely to use contractors than are documented workers, though statistical significance is sensitive to the inclusion of crop and task indicators, and wages and fringe compensation to workers who use contractors are lower, even after controlling for legal status. Research limitations/implications - The paper contributes to limited recent academic work on the role of labor contractors in US agriculture. Future work may examine ongoing changes to this role in the context of mutable immigration policy and public opinion. Practical implications - It is argued that the decline in labor contracting increases the need for employer‐level bilingual communication skills and compliance with labor regulations. Originality/value - Understanding current dynamics of the agricultural labor market should be of value to scholars of rural economies, farm owners and agricultural policymakers.

Suggested Citation

  • Anita Alves Pena, 2012. "Undocumented immigration and the business of farm labor contracting in the USA," American Journal of Business, Emerald Group Publishing Limited, vol. 27(1), pages 10-26, April.
  • Handle: RePEc:eme:ajbpps:v:27:y:2012:i:1:p:10-26
    DOI: 10.1108/19355181211217616
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    References listed on IDEAS

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    1. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    2. Miriam J. Wells & Don Villarejo, 2004. "State Structures and Social Movement Strategies: The Shaping of Farm Labor Protections in California," Politics & Society, , vol. 32(3), pages 291-326, September.
    3. 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.
    4. Julie Phillips & Douglas Massey, 1999. "The new labor market: Immigrants and wages after IRCA," Demography, Springer;Population Association of America (PAA), vol. 36(2), pages 233-246, May.
    5. James F. Rooney, 1961. "The Effects of Imported Mexican Farm Labor in a California County," American Journal of Economics and Sociology, Wiley Blackwell, vol. 20(5), pages 513-521, October.
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    Cited by:

    1. Castillo, Marcelo & Simnitt, Skyler & Astill, Gregory & Minor, Travis, 2021. "Examining the Growth in Seasonal Agricultural H-2A Labor," Economic Information Bulletin 327365, United States Department of Agriculture, Economic Research Service.

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