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The Impact of Wage Differentials on Choosing to Work in Agriculture

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  • Jeffrey M. Perloff

Abstract

Based on a model of industry choice and wage determination, a 1% increase in the relative wage in agriculture increases the probability that a nonurban male with no more than a ninth-grade education works in agriculture by 3.37% at the sample mean and by 1.3% when averaged over the entire sample. A 10% increase in wages may increase the proportion of those males who choose to work in agriculture by nearly a quarter.

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  • Jeffrey M. Perloff, 1991. "The Impact of Wage Differentials on Choosing to Work in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 671-680.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:3:p:671-680.
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    1. D. Kate Rubin & Jeffrey M. Perloff, 1993. "Who Works for Piece Rates and Why," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 1036-1043.
    2. Nong Zhu, 2002. "Impact des écarts de revenu sur les décisions de migration en Chine," Revue d’économie du développement, De Boeck Université, vol. 10(3), pages 135-158.
    3. Bryant, Amy & Richards, Timothy J., 1998. "Hysteresis And The Shortage Of Agricultural Labor," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20858, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Juan Soto & Milena Vargas & Julio A. Berdegué, 2018. "How Large Are the Contributions of Cities to the Development of Rural Communities? A Market Access Approach for a Quarter Century of Evidence from Chile," Documentos de Trabajo 17060, The Latin American and Caribbean Economic Association (LACEA).
    5. Hennessy, Thia C., 2002. "Modeling Succession on Irish Dairy Farms," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24953, European Association of Agricultural Economists.
    6. Maoyong Fan & Susan Gabbard & Anita Alves Pena & Jeffrey M. Perloff, 2015. "Why Do Fewer Agricultural Workers Migrate Now?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 665-679.
    7. Konseiga, Adama, 2006. "Household Migration Decisions as Survival Strategy: The Case of Burkina Faso," Discussion Papers 276269, University of Bonn, Center for Development Research (ZEF).
    8. Zhu, Nong, 2002. "The impacts of income gaps on migration decisions in China," China Economic Review, Elsevier, vol. 13(2-3), pages 213-230.
    9. Harsche, J., 2008. "Die Bedeutung der Landwirtschaft auf dem Arbeitsmarkt im Kontext wirtschaftsräumlicher Disparitäten – Ergebnisse einer Panel-Analyse," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    10. Harsche, Johannes, 2007. "Bestimmungsfaktoren für das Erwerbsverhalten von Landwirten unter besonderer Berücksichtigung der Unternehmereigenschaften," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(02), pages 1-12.
    11. Nong ZHU, 2001. "Impacts of Income Gap on Migration Decision in China," Working Papers 200117, CERDI.
    12. Marcelo Castillo & Diane Charlton, 2023. "Housing booms and H‐2A agricultural guest worker employment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 709-731, March.
    13. Takahashi, Taro & Maruya, Kaori & Nakajima, Toru, 2016. "Non-farmers’ willingness to farm: a large-scale choice experiment to identify policy options that can induce new entry to the agricultural industry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236368, Agricultural Economics Society.
    14. Mann, Stefan, 2007. "Wie entstehen HofnachfolgerInnen?," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 56(3).
    15. Adama Konseiga, 2007. "Household Migration Decisions as Survival Strategy: The Case of Burkina Faso," Journal of African Economies, Centre for the Study of African Economies, vol. 16(2), pages 198-233, March.
    16. Roger Claassen & Richard Horan, 2001. "Uniform and Non-Uniform Second-Best Input Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(1), pages 1-22, May.
    17. A. Ford Ramsey & Tadashi Sonoda & Minkyong Ko, 2023. "Intersectoral labor migration and agriculture in the United States and Japan," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 364-381, May.
    18. Ramsey, A. Ford & Sonoda, Tadashi & Ko, Minkyong, 2021. "Aggregation and Threshold Models of Intersectoral Labor Migration: Evidence from the United States and Japan," 2021 Conference, August 17-31, 2021, Virtual 315110, International Association of Agricultural Economists.
    19. Mann, Stefan, 2007. "Wie entstehen HofnachfolgerInnen?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(03), pages 1-5.
    20. James Breen & Darragh Clancy & Brian Moran & Fiona Thorne, 2009. "Modelling the potential supply of energy crops in Ireland: results from a probit model examining the factors affecting willingness to adopt," Working Papers 0905, Rural Economy and Development Programme,Teagasc.
    21. Andrew J. Cassey & Kwanyoung Lee & Jeremy Sage & Peter R. Tozer, 2018. "Assessing post-harvest labor shortages, wages, and welfare," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-24, December.
    22. Ivan A. Borisov, 2021. "Agricultural personnel and rural labour: How is their reproduction related?," Journal of New Economy, Ural State University of Economics, vol. 22(3), pages 161-183, October.
    23. Harsche, Johannes, 2007. "DIE BEDEUTUNG DER LANDWIRTSCHAFT AUF DEM ARBEITSMARKT IM KONTEXT WIRTSCHAFTSRAUMLICHER DISPARITATEN-ERGEBNISSE EINER PANEL-ANALYSE (German)," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7593, German Association of Agricultural Economists (GEWISOLA).
    24. Stefan Mann, 2007. "Tracing the process of becoming a farm successor on Swiss family farms," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 24(4), pages 435-443, December.
    25. Haaparanta, Pertti & Liski, Matti & Riipinen, Toni, 2002. "Welfare Reducing Emission Permit Trade," Conference papers 331007, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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