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FLC Usage Among California Growers under IRCA: An Empirical Analysis of Farm Labor Market Risk Management

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  • Dawn D. Thilmany

Abstract

Recent immigration reform efforts have been ineffective at controlling the flow of illegal immigration. Concurrently, a structural change occured in the agricultural sector as farm labor contractor (FLC) usage expanded. The FLC sector is, arguably, evolving due to the tighter regulatory and risk environment faced by producers. Using probit analysis of survey data from California growers, this study analyzes labor contracting patterns. Differences are found among regions, commodities, and several grower characteristics. However, the significant role of risk perceptions and management attitudes are of greatest interest given the absence of labor issues in agricultural risk management programs. Copyright 1996, Oxford University Press.

Suggested Citation

  • Dawn D. Thilmany, 1996. "FLC Usage Among California Growers under IRCA: An Empirical Analysis of Farm Labor Market Risk Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 946-960.
    • Handle: RePEc:oup:ajagec:v:78:y:1996:i:4:p:946-960
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    Cited by:

    1. Murray-Prior, Roy B. & Wright, Vic, 2004. "Use of strategies and decision rules by Australian wool producers to manage uncertainty," AFBM Journal, Australasian Farm Business Management Network, vol. 1, pages 1-16.
    2. Zachariah Rutledge & Pierre Mérel, 2023. "Farm labor supply and fruit and vegetable production," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 644-673, March.
    3. Susan M. Richter & J. Edward Taylor & Antonio Yúnez-Naude, 2007. "Impacts of Policy Reforms on Labor Migration from Rural Mexico to the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 269-288, National Bureau of Economic Research, Inc.
    4. Joost M.E. Pennings & Scott H. Irwin & Darrel L. Good, 2002. "Surveying Farmers: A Case Study," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 266-277.
    5. 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.
    6. Castillo, Marcelo & Martin, Philip & Rutledge, Zachariah, 2022. "The H-2A Temporary Agricultural Workers Program in 2020," USDA Miscellaneous 329068, United States Department of Agriculture.
    7. Pennings, Joost M.E. & Irwin, Scott H. & Good, Darrel L., 1999. "Surveying Farmers: A Research Note," AgMAS Project Research Reports 14781, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    8. Richards, Timothy J., 2018. "Immigration Reform and Farm Labor Markets," 2018 Annual Meeting, August 5-7, Washington, D.C. 274165, Agricultural and Applied Economics Association.
    9. Castillo, Marcelo & Martin, Philip & Rutledge, Zachariah, 2022. "The H-2A Temporary Agricultural Worker Program in 2020," Economic Information Bulletin 327353, United States Department of Agriculture, Economic Research Service.
    10. Stephen R. Boucher & Aaron Smith & J. Edward Taylor & Antonio Yúnez-Naude, 2007. "Impacts of Policy Reforms on the Supply of Mexican Labor to U.S. Farms: New Evidence from Mexico," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 4-16.
    11. Murray-Prior, Roy B. & Wright, Vic, 2001. "Influence of strategies and heuristics on farmers’ response to change under uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), pages 1-26.
    12. Rickard, Bradley J., 2014. "On the Political Economy of Guest Worker Programs in Agriculture," Working Papers 180139, Cornell University, Department of Applied Economics and Management.
    13. Rickard, Bradley J., 2015. "On the political economy of guest worker programs in agriculture," Food Policy, Elsevier, vol. 52(C), pages 1-8.
    14. Martin, Philip L. & Taylor, J. Edward, 2003. "Farm Employment, Immigration, and Poverty: A Structural Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-15, August.
    15. Stephen R. Boucher & Aaron Smith & J. Edward Taylor & Antonio Yúnez-Naude, 2007. "Impacts of Policy Reforms on the Supply of Mexican Labor to U.S. Farms: New Evidence from Mexico," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 4-16.

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