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The Structure of Wages and Benefits in the U.S. Pork Industry

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  • James Kliebenstein
  • Peter F. Orazem

Abstract

Pork production has evolved from relatively small, family-run operations toward large-scale operations with several employees. Important questions about the structure of compensation in this rapidly changing labor market are answered using probit and ordered probit models and data from a national survey of pork producers and their employees. The results suggest (i) the structure of wages in pork production is consistent with more developed labor markets; (ii) employees earn a wage premium for using advanced technology and working in larger operations; and (iii) employees are willing to accept lower wages in exchange for better benefits and working conditions. Copyright 1999, Oxford University Press.

Suggested Citation

  • James Kliebenstein & Peter F. Orazem, 1999. "The Structure of Wages and Benefits in the U.S. Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 144-163.
  • Handle: RePEc:oup:ajagec:v:81:y:1999:i:1:p:144-163
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    Cited by:

    1. Adhikari, Bishwa B. & Harsh, Stephen B. & Cheney, Laura Martin, 2003. "Factors Affecting Regional Shifts Of U.S Pork Production," 2003 Annual meeting, July 27-30, Montreal, Canada 22200, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Bitsch, Vera & Harsh, Stephen B. & Mugera, Amin W., 2003. "Risk In Human Resource Management And Implications For Extension Programming - Results Of Focus Group Discussions With Dairy And Green Industry Managers," 2003 Annual meeting, July 27-30, Montreal, Canada 22085, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Yu, Li & Hurley, Terrance M. & Kliebenstein, James B. & Orazem, Peter F., 2012. "Firm Size, Technical Change, and Wages in the Pork Sector, 1990-2005," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(2), August.
    4. Bitsch, Vera & Harsh, Stephen B., 2004. "Labor Risk Attributes in the Green Industry: Business Owners' and Managers' Perspectives," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(03), December.
    5. Marsh, John M. & Brester, Gary W., 1999. "Technological Change In The U.S. Beef And Pork Sectors: Impacts On Farm-Wholesale Marketing Margins And Livestock Prices," Trade Research Center Research Discussion Papers 29242, Montana State University, Department of Agricultural Economics and Economics.
    6. Li Yu & Peter F. Orazem, 2014. "O-Ring production on U.S. hog farms: joint choices of farm size, technology, and compensation," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 431-442, July.
    7. Terrance M. Hurley & James B. Kliebenstein & Peter F. Orazem, 2000. "An Analysis of Occupational Health in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 323-333.
    8. Lazarus, William F. & Platas, Diego E. & Morse, George W., 2002. "IMPLAN's Weakest Link: Production Functions or Regional Purchase Coefficients?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(1).
    9. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
    10. Yu, Li, 2008. "Three essays on technology adoption, firm size, wages and human capital," ISU General Staff Papers 2008010108000016715, Iowa State University, Department of Economics.

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