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Are U.S. Farm Wages Really Depressing? Evidence from the Northeast and South

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  • Tugrul Temel

    (Centre for World Food Studies, Amsterdam)

  • Edward M. Tavernier

    (Rutgers University)

Abstract

This study examines movements in U.S. real farm wages and whether or not wages tend to converge during 1978-92. Results from the Markov chain analysis support convergence in both the Northeast and the South to a lower wage rate than their respective regional average rates in 1978. A comparison of the time-invariant and actual terminal period distributions indicates that such tendency signals future wages to depress. This further suggests that the over-supply of labor, which manifests itself in the form of lower wages, can be viewed as a symptom of a healthy labor market responding to market signals.

Suggested Citation

  • Tugrul Temel & Edward M. Tavernier, 2001. "Are U.S. Farm Wages Really Depressing? Evidence from the Northeast and South," The Review of Regional Studies, Southern Regional Science Association, vol. 29(3), pages 212-225, Winter.
    • Handle: RePEc:rre:publsh:v:29:y:1999:i:3:p:212-225
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    References listed on IDEAS

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    Cited by:

    1. Temel, T. & Tansel, A. & Gungor, N.D., 2005. "Convergence of Sectoral Productivity in Turkish Provinces: A Markov Chains Model," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(2), pages 65-84.

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