Institutional wages and agricultural labor risk

Margaret Jodlowski and Alexandra E. Hill

No 404610, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: Agricultural wages have received growing policy and media attention in recent years, yet the mechanisms driving changes in wage distributions remain poorly understood. This paper examines whether changes in institutional wages can explain observed trends in wage compression across agricultural occupations. Using occupation-level data from the Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS) program and a difference-in-differences design exploiting cross-state variation in minimum wage levels over time, we estimate the effect of a state diverting from the federal minimum wage on wage levels and wage decile ratios for 11 agricultural occupations grouped into on-farm, supervisory, and secondary categories. Results provide initial evidence that minimum wages contribute to wage compression in agriculture, particularly through effects on lower-wage workers, and that these effects are heterogeneous across occupation groups.

Keywords: Consumer/Household Economics; Labor and Human Capital (search for similar items in EconPapers)
Pages: 33
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404610

DOI: 10.22004/ag.econ.404610

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