Do Minimum Wage Laws Affect People Who Are Not Covered? Evidence from Documented and Undocumented, Hourly and Piece Rate Workers in U.S. Agriculture
While a stated goal of minimum wage increases is to benefit low-income workers, some employers are not obligated to provide at least minimum wages to all employees. U.S. farm employers comprise one of these groups. Employees of large farms and H2-A workers (temporary nonimmigrant workers lawfully admitted to perform temporary or seasonal agricultural services) are protected by minimum wage legislation, while other migrant workers (especially those who are paid piece rate) are exempt. Furthermore, U.S. agriculture is characterized by a large percentage of illegal migrants, and workers who are illegal may or may not receive wages above minimum levels. This paper presents a case study, drawing from agriculture, that examines if and how minimum wage laws affect uncovered workers. Analysis examines wages and hours worked as functions of federal and state minimum wages using data from a nationally and regionally representative survey of employed farm workers. Results suggest wage increases for both covered and uncovered workers, greatest gains to those who are formally covered, and gains not being at the expense of hours worked.
|Date of creation:||Apr 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 300 S. Westnedge Ave. Kalamazoo, MI 49007 USA|
Web page: http://www.upjohn.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gowers, Robin & Hatton, Timothy J., 1994.
"The Origins and Early Impact of the Minimum Wage in Agriculture,"
CEPR Discussion Papers
1021, C.E.P.R. Discussion Papers.
- Robin Gowers & Timothy J. Hatton, 1997. "The Origins and Early Impact of the Minimum Wage in Agriculture," Economic History Review, Economic History Society, vol. 50(1), pages 82-103, 02.
- Sara Lemos, 2004. "Minimum Wage Policy and Employment Effects: Evidence from Brazil," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2004), pages 219-266, August.
- Orrenius, Pia M. & Zavodny, Madeline, 2008.
"The effect of minimum wages on immigrants' employment and earnings,"
0805, Federal Reserve Bank of Dallas.
- Pia M. Orrenius & Madeline Zavodny, 2008. "The Effect of Minimum Wages on Immigrants' Employment and Earnings," ILR Review, Cornell University, ILR School, vol. 61(4), pages 544-563, July.
- Orrenius, Pia M. & Zavodny, Madeline, 2008. "The Effect of Minimum Wages on Immigrants’ Employment and Earnings," IZA Discussion Papers 3499, Institute for the Study of Labor (IZA).
- Moretti, Enrico & Perloff, Jeffrey M., 2000.
"Minimum Wage Laws Lower Some Agricultural Wages,"
Institute for Research on Labor and Employment, Working Paper Series
qt9b81j9nr, Institute of Industrial Relations, UC Berkeley.
- Moretti, Enrico & Perloff, Jeffrey M., 2000. "Minimum Wage Laws Lower Some Agricultural Wages," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt51k1v5hf, Department of Agricultural & Resource Economics, UC Berkeley.
- Moretti, Enrico & Perloff, Jeffrey M, 2000. "Minimum wage laws lower some agricultural wages," CUDARE Working Paper Series 953, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- David Card & Alan B. Krueger, 1993.
"Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania,"
NBER Working Papers
4509, National Bureau of Economic Research, Inc.
- Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-93, September.
- V. Bhaskar & Ted To, 1996.
"Minimum Wages for Ronald McDonald Monopsonies: A Theory of Monopsonistic Competition,"
Labor and Demography
9603001, EconWPA, revised 21 May 1996.
- Bhaskar, V & To, Ted, 1999. "Minimum Wages for Ronald McDonald Monopsonies: A Theory of Monopsonistic Competition," Economic Journal, Royal Economic Society, vol. 109(455), pages 190-203, April.
- Jacob Mincer, 1974.
"Unemployment Effects of Minimum Wages,"
NBER Working Papers
0039, National Bureau of Economic Research, Inc.
- Tauchen, George E, 1981. "Some Evidence on Cross-Sector Effects of the Minimum Wage," Journal of Political Economy, University of Chicago Press, vol. 89(3), pages 529-47, June.
- Lustig, N. & Mcleod, D., 1996. "Minimum Wages and Poverty in Developing Countries : Some Empirical Evidence," Papers 125, Brookings Institution - Working Papers.
- William Wascher & David Neumark, 2000. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment," American Economic Review, American Economic Association, vol. 90(5), pages 1362-1396, December.
- Cadena, Brian C., 2014. "Recent immigrants as labor market arbitrageurs: Evidence from the minimum wage," Journal of Urban Economics, Elsevier, vol. 80(C), pages 1-12.
- David Neumark & Mark Schweitzer & William Wascher, 2005.
"The Effects of Minimum Wages on the Distribution of Family Incomes: A Nonparametric Analysis,"
Journal of Human Resources,
University of Wisconsin Press, vol. 40(4), pages 867-894.
- David Neumark & Mark Schweitzer & William Wascher, 1998. "The Effects of Minimum Wages on the Distribution of Family Incomes: A Non-Parametric Analysis," NBER Working Papers 6536, National Bureau of Economic Research, Inc.
- David Neumark & Mark E. Schweitzer & William L. Wascher, 2004. "The effects of minimum wages on the distribution of family incomes: a nonparametric analysis," Working Paper 0412, Federal Reserve Bank of Cleveland.
- Theodore P. Lianos, 1972. "Impact of Minimum Wages Upon the Level and Composition of Agricultural Employment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(3), pages 477-484.
- Bell, Linda A, 1997. "The Impact of Minimum Wages in Mexico and Colombia," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S102-35, July.
- Seiler, Eric, 1984. "Piece Rate vs. Time Rate: The Effect of Incentives on Earnings," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 363-76, August.
- Alana Gilbert & Euan Phimister & Ioannis Theodossiou, 2001. "The Potential Impact of the Minimum Wage in Rural Areas," Regional Studies, Taylor & Francis Journals, vol. 35(8), pages 765-770.
- John P. Formby & John A. Bishop & Hoseong Kim, 2010. "The Redistributive Effects and Cost-Effectiveness of Increasing the Federal Minimum Wage," Public Finance Review, , vol. 38(5), pages 585-618, September.
When requesting a correction, please mention this item's handle: RePEc:upj:weupjo:13-194. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.