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The Shadow Value of Legal Status--A Hedonic Analysis of the Earnings of U.S. Farm Workers

Author

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  • Wang, Sun Ling
  • Carroll, Daniel
  • Nehring, Richard
  • McGath, Christopher

Abstract

The purpose of this study is to estimate the shadow price of the legal status of farm workers. A hedonic function in terms of farm work experience, gender, education level, language skill, and legal status is estimated with control variables for employer type, farm work type, as well as other geographical and time variables. The data is drawn from the National Agricultural Workers Survey (NAWS). The preliminary results show that while legal status did contribute significantly to the wage differences it is not the major factor. After taking account of the composition shift in demographic characteristics, the quality adjusted labor prices still doubled in the past two decades.

Suggested Citation

  • Wang, Sun Ling & Carroll, Daniel & Nehring, Richard & McGath, Christopher, 2013. "The Shadow Value of Legal Status--A Hedonic Analysis of the Earnings of U.S. Farm Workers," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149866, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149866
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    File URL: http://purl.umn.edu/149866
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    References listed on IDEAS

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    1. Sabrina Isé & Jeffrey M. Perloff, 1995. "Legal Status and Earnings of Agricultural Workers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 375-386.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    3. Francisco L. Rivera-Batiz, 1999. "Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 91-116.
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    Cited by:

    1. V. Eldon Ball & Richard Nehring & Sun Ling Wang, 2016. "Productivity Growth in U.S. Agriculture: 1948-2013," International Productivity Monitor, Centre for the Study of Living Standards, vol. 30, pages 64-76, Spring.

    More about this item

    Keywords

    Farm worker; U.S. agriculture; undocumented labor; legal status; hedonic analysis; Agricultural and Food Policy; Labor and Human Capital; J31; J43;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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