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The impact of wage differentials on choosing to work in agriculture


  • Perloff, Jeffrey M


Based on a model of industry choice and wage determination, a 1% increase in the relative wage in agriculture increases the probability that a nonurban male with no more than a ninth-grade education works in agriculture by 3.37% at the sample mean and by 1.3% when averaged over the entire sample. A 10% increase in wages may increase the proportion of those males who choose to work in agriculture by nearly a quarter.
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Suggested Citation

  • Perloff, Jeffrey M, 1990. "The impact of wage differentials on choosing to work in agriculture," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt68j399k8, Department of Agricultural & Resource Economics, UC Berkeley.
  • Handle: RePEc:cdl:agrebk:qt68j399k8

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    References listed on IDEAS

    1. Willis, Robert J & Rosen, Sherwin, 1979. "Education and Self-Selection," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 7-36, October.
    2. Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    4. Rosenberg, Howard R. & Perloff, Jeffrey M., 1988. "Initial Effects Of The New Immigration Law On California Agriculture," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270293, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
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    Cited by:

    1. D. Kate Rubin & Jeffrey M. Perloff, 1993. "Who Works for Piece Rates and Why," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 1036-1043.
    2. Hennessy, Thia C., 2002. "Modeling Succession on Irish Dairy Farms," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24953, European Association of Agricultural Economists.
    3. Roger Claassen & Richard Horan, 2001. "Uniform and Non-Uniform Second-Best Input Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(1), pages 1-22, May.
    4. Maoyong Fan & Susan Gabbard & Anita Alves Pena & Jeffrey M. Perloff, 2015. "Why Do Fewer Agricultural Workers Migrate Now?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 665-679.
    5. repec:ags:gewipr:259698 is not listed on IDEAS
    6. repec:ags:gjagec:96734 is not listed on IDEAS
    7. Harsche, Johannes, 2007. "DIE BEDEUTUNG DER LANDWIRTSCHAFT AUF DEM ARBEITSMARKT IM KONTEXT WIRTSCHAFTSRAUMLICHER DISPARITATEN-ERGEBNISSE EINER PANEL-ANALYSE (German)," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7593, German Association of Agricultural Economists (GEWISOLA).
    8. Takahashi, Taro & Maruya, Kaori & Nakajima, Toru, 2016. "Non-farmers’ willingness to farm: a large-scale choice experiment to identify policy options that can induce new entry to the agricultural industry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236368, Agricultural Economics Society.
    9. Bryant, Amy & Richards, Timothy J., 1998. "Hysteresis And The Shortage Of Agricultural Labor," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20858, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).


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