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Assessing post-harvest labor shortages, wages, and welfare

Andrew Cassey (), Kwanyoung Lee, Jeremy Sage and Peter Tozer
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Kwanyoung Lee: Washington State University
Jeremy Sage: University of Montana

Agricultural and Food Economics, 2018, vol. 6, issue 1, 1-24

Abstract: Abstract For horticultural commodities, labor is necessary for post-harvest activities such as management, marketing, packing, and distribution. We create a model with pre- and post-harvest tasks and transportation network to study how a shortage in the pre-harvest labor market affects the post-harvest labor market and downstream commodity markets. Parameterized to U.S. pome and prunus industries, we find output prices are 16% greater, the prunus industry does less well adjusting, and producers benefit despite output reductions. Producers’ benefit comes almost exclusively from higher prices, but decreases when the resulting post-harvest labor shortage increases spoilage along the transportation network.

Keywords: Post-harvest; Labor shortage; Transportation; Pome; Prunus; Welfare (search for similar items in EconPapers)
JEL-codes: J43 Q13 (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1186/s40100-018-0112-6

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