Economics at your fingertips  

US agricultural exports and labor market adjustments

Xi He ()

Agricultural Economics, 2020, vol. 51, issue 4, 609-621

Abstract: This study empirically investigates the impact of US agricultural exports on farm and nonfarm employment and tests how individuals adjust to agricultural export shocks. Based on the data from 1991 to 2017 and a Bartik‐style instrument that exploits cross‐regional variation in agricultural export exposure stemming from initial differences in agricultural specialization and temporal variation in predicted US exports from exogenous tariff reductions, we find that a 1% increase in agricultural exports increases farm employment by 0.302% and has no statistically significant impact on nonfarm employment. The individual‐level analysis shows that, in response to positive agricultural export demand shocks, natives with a college degree are more likely to become self‐employed and start farm activities and while non‐natives without a college degree are more likely to become hired farmworkers. A back‐of‐the‐envelope calculation based on the estimates of agricultural trade elasticities of employment shows that on balance, job gains due to US agricultural exports are slightly larger than job loss due to agricultural imports, resulting in a net gain of around 0.24 million farm jobs over 1991–2017.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0169-5150

Access Statistics for this article

Agricultural Economics is currently edited by W.A. Masters and G.E. Shively

More articles in Agricultural Economics from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2022-08-03
Handle: RePEc:bla:agecon:v:51:y:2020:i:4:p:609-621