Abstract

AbstractThis article examines the impact of the 2008 Legal Arizona Workers Act on farm wage, production mix, farm capital use, and agricultural innovation using the synthetic control method. The findings indicate that the law significantly reduced farm worker population in Arizona. Farm wage is not affected by the decreased supply of farm labor because farms in Arizona reduced labor‐intensive crop production. The agricultural sector does not increase the use of farm capital and experiences a decrease in profits. Moreover, this study finds no impact on agricultural patents and research funding in Arizona.

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