IDEAS home Printed from https://ideas.repec.org/a/wly/apecpp/v47y2025i5p1791-1810.html

The changing values of the US farm workers' legal status and labor quality adjustment: A hedonic price analysis

Author

Listed:
  • Sun Ling Wang
  • Natalie R. Loduca

Abstract

This paper uses the 1989–2021 National Agricultural Workers Survey data to provide current evidence about farm workers' wage rate determinants, focusing on workers' legal status as well as workers employment type determinants. According to the results, more years of farm work experience, higher educational attainment, paid by piece rate, legal status, higher proficiency in English, male worker, and working as a supervisor can all result in higher wage rates. While legal status has a positive impact on wage rates, it only added about a 2%–3.1% or $0.27–$0.51 per hour wage premium for authorized workers in most of the model specifications. There were structural change effects in the shadow value of legal status in 2008 and 2011, showing that the wage gap increased in the post‐2008 period but has shrunk since 2011 under potential policy influences. After considering the compositional shift among demographic characteristics, employment types, types of work, and other factors, the quality‐adjusted hourly earnings still more than doubled over the past three decades. California, Northwest, and Midwest regions had relatively higher wage rates than other regions.

Suggested Citation

  • Sun Ling Wang & Natalie R. Loduca, 2025. "The changing values of the US farm workers' legal status and labor quality adjustment: A hedonic price analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 47(5), pages 1791-1810, December.
    • Handle: RePEc:wly:apecpp:v:47:y:2025:i:5:p:1791-1810
    DOI: 10.1002/aepp.13530
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/aepp.13530
    Download Restriction: no
    File URL: https://libkey.io/10.1002/aepp.13530?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ivan Kandilov & Tomislav Vukina, 2016. "Salaries Or Piece Rates: On The Endogenous Matching Of Harvest Workers And Crops," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 76-99, January.
    2. Michael A. Clemens & Ethan G. Lewis & Hannah M. Postel, 2018. "Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion," American Economic Review, American Economic Association, vol. 108(6), pages 1468-1487, June.
    3. Breno Sampaio & Gustavo Ramos Sampaio & Yony Sampaio, 2013. "On Estimating the Effects of Immigrant Legalization: Do U.S. Agricultural Workers Really Benefit?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 932-948.
    4. Timothy J Richards, 2018. "Immigration Reform and Farm Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1050-1071.
    5. Christoph Albert, 2021. "The Labor Market Impact of Immigration: Job Creation versus Job Competition," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 35-78, January.
    6. Diane Charlton & Marcelo Castillo, 2021. "Potential Impacts of a Pandemic on the US Farm Labor Market," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 39-57, March.
    7. Sherrie A. Kossoudji & Deborah A. Cobb-Clark, 2002. "Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 598-628, July.
    8. Kandilov, Amy & Kandilov, Ivan T., "undated". "The Impact of the Minimum Wage on Employment, Earnings, Wages, and Hours in the U.S. Agricultural Sector," 2018 Annual Meeting, August 5-7, Washington, D.C. 274158, Agricultural and Applied Economics Association.
    9. Richards, Timothy J., "undated". "Immigration Reform and Farm Labor Markets," 2018 Annual Meeting, August 5-7, Washington, D.C. 274165, Agricultural and Applied Economics Association.
    10. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    11. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    12. Audra J. Bowlus & Chris Robinson, 2012. "Human Capital Prices, Productivity, and Growth," American Economic Review, American Economic Association, vol. 102(7), pages 3483-3515, December.
    13. J. Edward Taylor & Dawn Thilmany, 1993. "Worker Turnover, Farm Labor Contractors, and IRCA's Impact on the California Farm Labor Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 350-360.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Sun Ling & Loduca, Natalie, "undated". "The changing values of the U.S. farm workers’ legal status and labor quality in the U.S. farm workforce," 2024 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2024, San Antonio, Texas 339078, Agricultural and Applied Economics Association.
    2. Diane Charlton, 2022. "Seasonal farm labor and COVID‐19 spread," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1591-1609, September.
    3. Marcelo Castillo & Diane Charlton, 2023. "Housing booms and H‐2A agricultural guest worker employment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 709-731, March.
    4. Tianyuan Luo & Genti Kostandini & Jeffrey L. Jordan, 2023. "Stringent immigration enforcement and the farm sector: Evidence from E‐Verify adoption across states," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1211-1232, June.
    5. Diane Charlton, 2024. "The Farm Workforce Modernization Act and warnings from previous immigration reforms," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(3), pages 934-953, September.
    6. Shrestha, Samyam, 2024. "Seasonal Labor Shortage and the Production and Trade of Labor-Intensive Goods: Evidence from U.S. Agriculture," 2024 Annual Meeting, July 28-30, New Orleans, LA 343996, Agricultural and Applied Economics Association.
    7. An Li & Jeffrey J. Reimer, 2021. "The US Market for Agricultural Labor: Evidence from the National Agricultural Workers Survey," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1125-1139, September.
    8. 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.
    9. Diane Charlton & Genti Kostandini, 2021. "Can Technology Compensate for a Labor Shortage? Effects of 287(g) Immigration Policies on the U.S. Dairy Industry," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 70-89, January.
    10. Hernandez, Manuel & Gan, Li & Zhang, Yike, 2026. "When Border Enforcement Formalize Labor: Evidence from Texas's Operation Lone Star," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404371, Agricultural and Applied Economics Association.
    11. Ifft, Jennifer & Jodlowski, Margaret, 2022. "Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement," Labour Economics, Elsevier, vol. 78(C).
    12. repec:ags:aaea22:343996 is not listed on IDEAS
    13. Bradford L. Barham & Ana P. Melo & Thomas Hertz, 2020. "Earnings, Wages, and Poverty Outcomes of US Farm and Low‐Skill Workers," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 307-334, June.
    14. Stephen F. Hamilton & Timothy J. Richards & Aric P. Shafran & Kathryn N. Vasilaky, 2022. "Farm labor productivity and the impact of mechanization," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1435-1459, August.
    15. Dahye, Kim & Castillo, Marcelo & Rutledge, Zachariah, "undated". "Domestic Farm Employment and the H-2A Visa Program," 2024 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2024, San Antonio, Texas 339079, Agricultural and Applied Economics Association.
    16. Tianyuan Luo & Genti Kostandini, 2022. "Stringent immigration enforcement and responses of the immigrant‐intensive sector: Evidence from E‐Verify adoption in Arizona," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1411-1434, August.
    17. 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.
    18. Timothy J. Richards, 2020. "Income Targeting and Farm Labor Supply," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 419-438, March.
    19. repec:ags:aaea22:335578 is not listed on IDEAS
    20. Zachariah Rutledge & Timothy J. Richards & John D. Lowrey, 2026. "Health coverage and farmworker productivity," American Journal of Agricultural Economics, John Wiley & Sons, vol. 108(1), pages 309-335, January.
    21. Jean-Louis Arcand & Linguère M'Baye, 2013. "Braving the waves: the role of time and risk preferences in illegal migration from Senegal," CERDI Working papers halshs-00855937, HAL.
    22. Çağatay Bircan & Ralph De Haas, 2020. "The Limits of Lending? Banks and Technology Adoption across Russia," The Review of Financial Studies, Society for Financial Studies, vol. 33(2), pages 536-609.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:apecpp:v:47:y:2025:i:5:p:1791-1810. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2040-5804 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.