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Immigrant Workers and Farm Performance: Evidence from Matched Employer-Employee Data

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Author Info

  • Malchow-Møller, Nikolaj

    ()
    (University of Southern Denmark)

  • Munch, Jakob R.

    ()
    (University of Copenhagen)

  • Seidelin, Claus Aastrup

    ()
    (University of Southern Denmark)

  • Skaksen, Jan Rose

    ()
    (Copenhagen Business School)

Abstract

Many developed countries have recently experienced a significant inflow of immigrants in the agricultural sector. At the same time, the sector is still in a process of structural transformation resulting in fewer but bigger and presumably more efficient farms. In this paper, we exploit detailed matched employer-employee data for the entire population of Danish farms in the period 1980-2008 to analyze the micro-level relationship between these two developments. We find that farms that employ immigrants tend to be both larger and at least as productive as other farms. Furthermore, an increased use of immigrants is found to be associated with an improvement in farm performance as measured by job creation and revenue, and this seems at least in part to reflect a causal effect of the immigrants.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7133.

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Length: 46 pages
Date of creation: Jan 2013
Date of revision:
Publication status: published in: American Journal of Agricultural Economics, 2013, 95 (4), 819-841
Handle: RePEc:iza:izadps:dp7133

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Keywords: agriculture; matched employer-employee data; immigration;

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References

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  1. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  2. George J. Borjas, 2006. "Native Internal Migration and the Labor Market Impact of Immigration," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  3. George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
  4. Malchow-Møller, Nikolaj & Munch, Jakob R. & Skaksen, Jan Rose, 2007. "Do Immigrants Affect Firm-Specific Wages?," IZA Discussion Papers 3264, Institute for the Study of Labor (IZA).
  5. David Card, 2004. "Is the New Immigration Really So Bad?," CReAM Discussion Paper Series 0402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," NBER Working Papers 3069, National Bureau of Economic Research, Inc.
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  8. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November.
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  14. Philip L. Martin & J. Edward Taylor, 1998. "Poverty Amid Prosperity: Farm Employment, Immigration, and Poverty in California," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1008-1014.
  15. Alessandra Venturini, 1999. "Do immigrants working illegally reduce the natives' legal employment? Evidence from Italy," Journal of Population Economics, Springer, vol. 12(1), pages 135-154.
  16. Mark D. Partridge & Dan S. Rickman & Kamar Ali, 2008. "Recent Immigration and Economic Outcomes in Rural America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1326-1333.
  17. Abdurrahman Aydemir & George J. Borjas, 2007. "Cross-Country Variation in the Impact of International Migration: Canada, Mexico, and the United States," Journal of the European Economic Association, MIT Press, vol. 5(4), pages 663-708, 06.
  18. Steve J. Davis & John Haltiwanger, 1991. "Gross job creation, gross job destruction and employment reallocation," Working Paper Series, Macroeconomic Issues 91-5, Federal Reserve Bank of Chicago.
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