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Who Works for Piece Rates and Why

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  • D. Kate Rubin
  • Jeffrey M. Perloff

Abstract

The decision whether to work on a piece-rate or time-rate agricultural job depends on workers' preferences for earnings and nonpecuniary attributes of jobs. These preferences differ geographically and with workers' demographic characteristics, particularly age. Based on estimates that control for sample selectivity, nonpecuniary effects of age dominate earnings effect in most age groups. A substantial share of prime-age workers do not choose to work in the more lucrative piece-rate jobs. Indeed, all else the same, prime-age workers are the least likely among all age groups to work piece rate.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:ajagec:v:75:y:1993:i:4:p:1036-1043.
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    References listed on IDEAS

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    1. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 7-36, October.
    2. Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
    3. Gyourko, Joseph & Tracy, Joseph, 1988. "An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 229-253, April.
    4. 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.
    5. Perloff, Jeffrey M & Sickles, Robin C, 1987. "Union Wage, Hours, and Earnings Differentials in the Construction Industry," Journal of Labor Economics, University of Chicago Press, vol. 5(2), pages 174-210, April.
    6. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
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    Cited by:

    1. Vegard Skirbekk, 2004. "Age and Individual Productivity: A Literature Survey," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 2(1), pages 133-154.
    2. Pena Anita Alves, 2010. "Legalization and Immigrants in U.S. Agriculture," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-24, February.
    3. Luke, Nancy & Munshi, Kaivan, 2011. "Women as agents of change: Female income and mobility in India," Journal of Development Economics, Elsevier, vol. 94(1), pages 1-17, January.

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