The changing values of the US farm workers' legal status and labor quality adjustment: A hedonic price analysis

Sun Ling Wang and Natalie R. Loduca

Applied Economic Perspectives and Policy, 2025, vol. 47, issue 5, 1791-1810

Abstract: This paper uses the 1989–2021 National Agricultural Workers Survey data to provide current evidence about farm workers' wage rate determinants, focusing on workers' legal status as well as workers employment type determinants. According to the results, more years of farm work experience, higher educational attainment, paid by piece rate, legal status, higher proficiency in English, male worker, and working as a supervisor can all result in higher wage rates. While legal status has a positive impact on wage rates, it only added about a 2%–3.1% or $0.27–$0.51 per hour wage premium for authorized workers in most of the model specifications. There were structural change effects in the shadow value of legal status in 2008 and 2011, showing that the wage gap increased in the post‐2008 period but has shrunk since 2011 under potential policy influences. After considering the compositional shift among demographic characteristics, employment types, types of work, and other factors, the quality‐adjusted hourly earnings still more than doubled over the past three decades. California, Northwest, and Midwest regions had relatively higher wage rates than other regions.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:47:y:2025:i:5:p:1791-1810

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