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

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

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.

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File URL: http://purl.umn.edu/149866
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Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 149866.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:149866
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  1. 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, vol. 12(1), pages 91-116.
  2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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