Testing for Disequilibrium in the Hired Farm Labor Market

James A. Duffield and Robert Coltrane

American Journal of Agricultural Economics, 1992, vol. 74, issue 2, 412-420

Abstract: Producers of labor-intensive crops fear labor shortages if sanctions under the Immigration Reform and Control Act (IRCA) of 1986 are strictly enforced. They argue that special government programs are necessary to insure an adequate labor supply. On the other hand, farm labor advocates argue that such policies create an oversupply of workers and depress wages. A model of the farm labor market was tested for disequilibrium using cusum and cusum squares criteria. Results give no evidence that the hired farm labor market is chronically out of balance or unable to make equilibrium adjustments.

Date: 1992
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