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Assessing post-harvest labor shortages, wages, and welfare

Author

Listed:
  • Andrew J. Cassey

    (Washington State University)

  • Kwanyoung Lee

    (Washington State University)

  • Jeremy Sage

    (University of Montana)

  • Peter R. Tozer

    (University of Massey)

Abstract

For horticultural commodities, labor is necessary for post-harvest activities such as management, marketing, packing, and distribution. We create a model with pre- and post-harvest tasks and transportation network to study how a shortage in the pre-harvest labor market affects the post-harvest labor market and downstream commodity markets. Parameterized to U.S. pome and prunus industries, we find output prices are 16% greater, the prunus industry does less well adjusting, and producers benefit despite output reductions. Producers’ benefit comes almost exclusively from higher prices, but decreases when the resulting post-harvest labor shortage increases spoilage along the transportation network.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:agfoec:v:6:y:2018:i:1:d:10.1186_s40100-018-0112-6
    DOI: 10.1186/s40100-018-0112-6
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    More about this item

    Keywords

    Post-harvest; Labor shortage; Transportation; Pome; Prunus; Welfare;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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