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Immigrant Workers and Technological Change in U.S. Agriculture: A Profit Maximization Approach of Induced Innovation

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  • Napasintuwong, Orachos
  • Emerson, Robert D.

Abstract

This paper analyzes changes in U.S. agricultural technology during 1960-1999, emphasizing the role of immigrant workers on farm mechanization. The rates and directions of biased technological change based on the induced innovation theory are compared before and after the passage of the Immigration Reform and Control Act of 1986 which was intended to reduce employment of unauthorized workers. Unlike previous studies of induced innovation, this paper develops a new theoretical and empirical model of induced innovation using a profit maximization approach. The contribution of the profit maximization approach is that it allows changes in output combinations as a result of technological change. We found that the technology was biased against hired and self-employed labor, and toward capital during the study period. Although the bias against labor diminished considerably after 1986, the bias toward capital did not change appreciably after 1986. An important insight via the profit maximization approach is that the technology became biased in favor of labor intensive, perishable crops after 1986.

Suggested Citation

  • Napasintuwong, Orachos & Emerson, Robert D., 2006. "Immigrant Workers and Technological Change in U.S. Agriculture: A Profit Maximization Approach of Induced Innovation," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25505, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25505
    DOI: 10.22004/ag.econ.25505
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    References listed on IDEAS

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    1. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
    2. Ball, V. Eldon & Butault, Jean-Pierre & Nehring, Richard F., 2001. "U.S. Agriculture, 1960-96 A Multilateral Comparison of Total Factor Productivity," Technical Bulletins 33590, United States Department of Agriculture, Economic Research Service.
    3. Hayami, Yujiro & Ruttan, V W, 1970. "Factor Prices and Technical Change in Agricultural Development: The United States and Japan, 1880-1960," Journal of Political Economy, University of Chicago Press, vol. 78(5), pages 1115-1141, Sept.-Oct.
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    Cited by:

    1. Kimhi, Ayal, 2015. "Is foreign farm labor a blessing or a curse? Evidence from Israel," 2015 Conference, August 9-14, 2015, Milan, Italy 211852, International Association of Agricultural Economists.
    2. Kimhi, Ayal, 2014. "Are Migrant Agricultural Workers Replacing the Local Workforce?," Discussion Papers 290033, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

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