Farm Labor Market Research Articles

‘Fettered mobility’ and translocality: Irregular farm workers and the informal labour market in rural Taiwan

Investigating the multi-layered mobility of Southeast Asian irregular farm workers in rural Taiwan, this article examines the formation of their mobility in a physical, geographical, occupational and socio-economic sense. Focusing on frequent movement in these four aspects, this article coins the term ‘fettered mobility’ for workers’ constant relocation in the villages’ informal farm labour market. In tandem with the focus of this Special Issue on the ongoing transformations of migration at the crossroad between the legal, social and economic obstacles dictated by nation states and the market, and new patterns of movement, this article shows how ‘fettered mobility’ is an unintentional result of the Taiwanese state’s mobility regime, which regulates foreign nationals’ mobility by categorizing a hierarchical legal status. Fettered mobility is facilitated by the translocal migrant community constituted by the co-ethnic link between migrant workers and migrant spouse farmers, and also by the inter-ethnic link between the migrant community on the one hand and Taiwanese farmers and unlicensed brokers on the other. When migration is reconfiguring at a global, regional and local scale, fettered mobility is an assemblage in which the state, market and individual amalgamate into a networked, mobile, irregular and precarious labour force in which unprotected migrant workers are vulnerable to the state’s power to repatriate. Repatriation is an omnipresent threat, and anyone who knows of a migrant worker’s fettered mobility can put an end to their migration. Presenting fettered mobility as an assemblage, this article enriches the ongoing debate on the relationship between mobility and immobility and underlines its conditionality and instability.

The Farm Workforce Modernization Act and warnings from previous immigration reforms

AbstractImmigrants are vital to agricultural production in the United States, and nearly half the crop workforce is unauthorized. Previous attempts to reform the immigration system have not successfully legalized the farm workforce or caused substantive rise in farmworker incomes. Current proposed legislation would legalize unauthorized farmworkers, streamline the H‐2A agricultural guest worker program, and provide a pathway to citizenship for H‐2A workers while simultaneously requiring agricultural employers to check the immigration status of workers using E‐Verify. This paper discusses proposed farm labor legislation in the context of current farm labor market conditions, outcomes of historical farm labor and immigration policies, and ongoing immigration trends.

Livelihood Diversity of Forcibly Displaced Rohingyas Encamped in Bangladesh

This paper assesses the livelihood strategies of the forcibly displaced Myanmar nationals encamped in Cox’s Bazar district of Bangladesh. Although the predominant source of livelihood of the encamped Rohingya households is supposed to be various sources of assistance and transfer receipts, almost 76 per cent of them report positive income from various sources, including farm activities, enterprises, labour market, remittance, and non-food transfers, despite restrictions on mobility and income generation through employment. While a few of the sources dampen income inequality, others exacerbate it. Similarly, while several factors facilitate participation in income generation both at the extensive and intensive margins, a few others appear to hinder the process. Both the diversity and the level of income appear to be higher for households in the old wave (arrived before 25 August 2017) compared to that in the new wave (arrived after 25 August 2017), possibly due to better integration and adaptation to the local environment and context. The encamped Rohingya households with supplementary earned income and receipts rather than exclusively depending on WFP assistance enjoy relatively better well-being, at least in terms of higher expenditure and dietary diversity. The evidence on the impact of earned income and receipts on household well-being indicators reinforces their appeal for the right to work.

Refugee inflows, surplus farm labor, and crop marketization in rural Africa

This paper sheds light on the structure of factor and output market frictions to investigate long-term effects of refugee inflows on host farmers. Combining a canonical agricultural household model, the natural experimental setting of mass refugee inflows into Tanzania in the early 1990s, and longitudinal panel data from the host economy, I show that refugee inflows cause market-specific gains and losses. Refugee inflows tighten the off-farm labor market participation constraint, implying an increase in surplus farm labor and labor market inefficiency. On the other hand, I observe a positive impact on the transition from subsistence to crop marketization. This transition is revealed to be primarily due to a reduction in fixed transaction costs around refugee camps, not due to an increase in consumption demand by refugees. While the overall impact on agricultural labor productivity is negative, the “surplus farm labor effect” and the “crop marketization effect” act in opposite directions.

Impact of COVID-19 pandemic on African indigenous vegetables value chain in Kenya

BackgroundAfrican indigenous vegetables are important for food security and nutrition, and income of the poor farm households. In the era of COVID-19, they are critical for boosting people’s immunity. Unfortunately, both production of and trade in these vegetables is likely to be severely affected by the pandemic.MethodsThis study examined potential effects of COVID-19 pandemic on production and trade of African indigenous vegetables using a cross-sectional survey of 244 farmers and 246 traders from different regions in Kenya.ResultsCOVID-19 has a negative impact on production and trading of AIVs in Kenya. Findings indicate that 75% of the farmers are experiencing declining production due to reduced access to input, farm labour and output market. Secondly, about 98% of the traders have recorded a drop in sales volumes due to containment measures implemented by the government and personal safety precautions. In particular, farmers’ production and traders’ sales volumes declined by 39 and 65%, respectively, during the first phase of the pandemic.ConclusionThe findings indicate that the sub-sector requires targeted interventions which may include input support, careful reopening and control of the open-air markets, reduced taxation and facilitated access to urban markets.

Potential Impacts of a Pandemic on the US Farm Labor Market.

An outbreak of COVID‐19 among farmworkers could have significant impacts on the workers, agricultural producers, and the consumers. Farmers are implementing new labor management practices to slow the spread of the virus among workers. Since immigration is temporarily restricted, farmers may have difficulty securing a sufficient workforce. We test whether changes in the unemployment rate affected H‐2A guest worker demand before the pandemic and find a statistically significant negative impact. Nevertheless, we expect that H‐2A recruitment will be vital to sustaining agricultural production. We conclude by discussing potential long‐term impacts of the pandemic on farm labor supply and demand.

Does the future of a farm depend on its neighbourhood? Evidence on intra-family succession among fruit and vegetable farms in Italy

The transfer of farm activity over time occurs through different pathways, among which the more frequent is intra-family farm succession. Thus, better information on farm succession determinants is crucial for understanding farm succession and informing appropriate sectoral policies. To date, substantial research has focused on the effect of farm, farmer and potential heir features on farm succession, while the role played by socio-economic conditions around a farm has been relatively less examined. Building on previous contributions, the present paper considers farm succession as the opposite of labour migration out of the agricultural sector. Thus, the effect of the labour market and surrounding conditions (LMSC) around a farm on its succession probability is explored. The aim of this paper is therefore to explore whether and to what extent the inclusion of LMSC variables may contribute to a better understanding of farm succession. Using data from a sample of 266 fruit and vegetable farms (gathered for informative purposes by a producers’ organization consortium), empirical evidence that LMSC variables play an important role in explaining the succession probability in these types of farms is provided. Specifically, the results show that (i) including LMSC variables in a farm succession analysis increases the explanatory power and robustness of the model estimates; (ii) LMSC variables have a non-linear effect on succession; and (iii) some explanatory variables (farmer education and farm age, specialization and dimension) are significant across various specifications, while other variables (farmer age, territorial location and distance of a farm from its producer organization) change their sign and/or significance when LMSC variables are included in the model. As a consequence, our findings suggest that LMSC variables should be included in farm succession and labour market analysis to provide a better estimate of farm succession probability.

Ratio of farmworkers to farm jobs in California increased to 2.3 in 2016

California Employment Development Department data suggest that almost 5% of California's workers were employed in agriculture, in 2016. In that year, monthly average employment in agriculture was 425,400, but the number of workers with at least one job in agriculture was 2.3 times that figure, 989,500. The number of hired farmworkers, including supervisors and office personnel, rose almost 20% between 2015 and 2016. Most workers employed in agriculture do not work year-round, so there is a gap between the average earnings of a full-time equivalent job in agriculture ($32,316 in 2016) and the average earnings of actual agricultural workers ($19,800 in 2016). This gap was widest for the third of all farmworkers employed by farm labor contractors (FLCs). Over half of the workers whose maximum earnings were in agriculture had only one farm job. Almost 20% of farmworkers received unemployment insurance benefits in 2016, including half of those whose maximum earnings were in logging and cotton ginning. Public policy has long favored a farm labor market in which most workers are employed year-round; these data indicate that the farm labor market in California is, on average, heading in the opposite direction.

Immigration Reform and Farm Labor Markets

AbstractFarmers throughout the United States report a shortage of workers. At the same time, there are proposals to strengthen the enforcement of existing immigration laws. In this paper, we develop an equilibrium approach to examine the impact of removing undocumented workers from the California agricultural labor market, and to infer whether there is evidence of shortages using individual‐worker data. We find evidence that is consistent with a persistent shortage in some sub‐sectors of the California farm labor market. Further, we conduct counter‐factual policy simulations over a range of possible policy alternatives, and find that removing 50% all undocumented farm workers from the state would lead to an increase in wages of over 22%.

Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion.

An important class of active labor market policy has received little impact evaluation: immigration barriers intended to raise wages and employment by shrinking labor supply. Theories of endogenous technical advance raise the possibility of limited or even perverse impact. We study a natural policy experiment: the exclusion of almost half a million Mexican 'bracero' farm workers from the United States to improve farm labor market conditions. With novel archival data we measure state-level exposure to exclusion, and model the labor-market effect in the absence of technical change. We reject such an effect and fail to reject a null effect.

Off-farm employment and agricultural specialization in China

While it is well known that China's off farm labor market is emerging rapidly, less is known about the effect of movement off the farm on the farming practices of those that have continued to farm. The overall goal of this paper is to analyze the effects of changes in China's off farm employment on one aspect of the performance of China's agricultural sector: the emergence of specialization in farming. To achieve this goal, we have three specific objectives. First, we document the changes in the flow of labor out of China's villages. Second, we examine how specialization in farming has changed over time. Third, we examine the association between off farm labor flows and specialization. Using panel data from a national representative data collected by the authors between 1999 and 2008, the analysis finds that off farm employment is indeed rising rapidly. At the same time, specialization is occurring off and on the farm. There is a strong and robust correlation between off farm employment and on farm specialization. The results imply that China's agriculture has responded dynamically to the modernization happening elsewhere in the economy.

Organic farms' seasonal farm labour-sourcing strategies in the pre-‘Arizona’ mode of immigration control

ABSTRACTThis study analysed the strategies of the more labour-intensive organic farms in sourcing seasonal farmworkers for their operations. The study period (2002) captures the farm labour market conditions prior to enforcement of stricter ‘Arizona’ style of immigration controls. Farmers at that time usually would tend to exhaust the full potentials of family labour contributions before relying on off-farm labour sources. When off-farm workers were considered, the results establish the farms' dependence on foreign labourers for seasonal farm work, although farmers seemed to have already been more cautiously hiring these workers in areas with lower concentrations of undocumented workers. This study also confirmed that farmers generally used high wage offers (possibly directed to domestic workers with more employment options) to lure them into working in their farms. The results also emphasize the need for improvements in the H2A guest farmworker visa programme that did not offer significant remedy for seasonal farm labour hiring at that time.

The development of farm labor market in rural China

Purpose – The purpose of this paper is to examine key determinants of farm labor market development in rural China. Design/methodology/approach – Probit, Logit, and IV-Probit model are used to provide pertinent empirical analysis. Findings – Analysis of survey data establishes three facts about the farm labor market in rural China: first, households with high farm endowment are more likely to hire farm labor; second, because of the mismatch between farm ability and land size created by egalitarian land reallocation, households with more land reallocations are more likely to participate in farm labor market to adjust such mismatch; third, land rental market and farm labor market seem to be complementary. These results are robust to alternative model specifications, subsamples, alternative dependent variables, and additional controls. Welfare analysis demonstrates that the farm labor market is conducive to agricultural output. Originality/value – The main contribution of this study is to lay out stylized facts in terms of the development of farm labor market using a unique survey data set.

Impacts of Migration on Household Production Choices: Evidence from China

The great migration from Chinese farms to cities during the past several decades ranks among the most economically consequential of modern population movements. We use a national sample of rice-producing Chinese households to examine the effects of that migration on agricultural production. Our assessment involves evaluating four alternative theories of labour market equilibrium in the framework of an expanded agricultural household model. Migration’s farm production impacts appear to be slight, not on account of farm labour market perfections or remittance-financed technological improvements, but by substituting a reduction in leisure and other low-return activities for lost labour.

The Rapid Rise of Cross‐Regional Agricultural Mechanization Services in China

Although Adam Smith (1776) and Alfred Marshall (1920) emphasized the gains from specialization that arise from the division of labor,their focus was on the manufacturing sector. Both saw farming as being on too small a scale and bereft of economies of scale, with a market that was too small and local, with too sharp a seasonality, and too quick a succession of tasks to support either the development of a division of labor over the tasks of a cropping season or of mechanization. Smith and Marshall’s vision of farming— and its implications for division of labor and mechanization—was manifest again in the 1950s to the present in Asia. Ruttan (2001) puts forward nearly the same ideas and terms as Smith and Marshall, but for contemporary small rice farms in Asia. He emphasizes that the use of machines for the series of short tasks performed on tiny farms would imply costly investment in specialized machines that small farmers would be loath to make. And even if these farmers mechanized, Ruttan posited that it would not induce a segmented and specialized farm labor market as,again,the critical mass of demand for each segment would not be present. Otsuka (2012) goes further along these lines to note that only on larger farms would the mechanization investment,

Disposal of pesticide waste from agricultural production in the Al-Batinah region of Northern Oman

During the last two decades Oman has experienced rapid economic development but this has been accompanied by environmental problems. Manufacturing and agricultural output have increased substantially but initially this was not balanced with sufficient environmental management. Although agriculture in Oman is not usually considered a major component of the economy, government policy has been directed towards diversification of national income and as a result there has been an increasing emphasis on revenue from agriculture and an enhancement of production via the use of irrigation, machinery and inputs such as pesticides. In recent years this has been tempered with a range of interventions to encourage more sustainable production. Certain pesticides have been prohibited; there has been a promotion of organic agriculture and an emphasis on education and awareness programs for farmers. The last point is of especial relevance given the nature of the farm labour market in Oman and a reliance on expatriate and often untrained labour. The research, through a detailed stratified survey, explores the state of knowledge at farm-level regarding the safe disposal of pesticide waste and what factors could enhance or indeed operate against the spread and implementation of that knowledge. Members of the recently constituted Farmers Association expressed greater environmental awareness than their non-member counterparts in that they identified a more diverse range of potential risks associated with pesticide use and disposed of pesticide waste more in accordance with government policy, albeit government policy with gaps. Workers on farms belonging to Association members were also more likely to adhere to government policy in terms of waste disposal. The Farmers Association appears to be an effective conduit for the diffusion of knowledge about pesticide legislation and general awareness, apparently usurping the state agricultural extension service.

Farmers’ perceptions of the impact of legislation on farm workers’ wages and working conditions: an eastern cape case study

ABSTRACT The status of South African farm workers has changed significantly over the past five decades. Using data from three major surveys conducted between 1957 and 2008, an Eastern Cape district was used as a case study to assess farmers’ perceptions of the changes that had occurred, particularly as a result of legislation. Considering the changes, the impacts on the farm labour market and wage and non-wage working conditions are analysed. The legislation focused on includes the Extension of Security of Tenure Act 62 (ESTA) of 1997, the Basic Conditions of Employment Act 75 (BCEA) of 1997 and minimum wage legislation. Farmers believed legislation had both positive and negative effects, which were compounded by changes in the political and economic contexts. The case study reveals that government has a role in improving the status of farm labourers, with education and healthcare services requiring special attention. However, caution is needed to ensure that further reductions in farm employment are restricted.

The impact of fiscal policies on agricultural household decisions

This paper provides a comparative static analysis of farm household's production, consumption, and labor market decisions under alternative tax policies. We explore the implications of non-separable household decisions caused by widespread non-participation in labor, land, financial and/or food markets, as is typical of low income economies. The analytical results indicate that when labor market imperfections occur, most tax-induced responses are ambiguous, mainly due to shadow price effects. This is particularly the case for the labor market and production responses to most tax tools under study, while a decreasing demand for consumption goods appears to be the result in several cases. Furthermore, tax-induced allocation effects may differ between the non-separable and the separable model versions, indicating the potential impact of labor market constraints on farm household responses to tax policies. In particular, standard taxes as well as a land tax may imply production adjustments in the case of non-separability.

The rise of migration and the fall of self employment in rural China's labor market

Abstract When examining questions regarding the Lewis model, one of the most salient set of facts involves the shift of labor between agricultural and the off farm sectors. The goal of this paper is to answer several questions about the nature of this movement: How has the expansion of the economy after 2000 affected off farm labor market participation? Has off farm labor continued to rise? What is this rise being driven by—migrant wage earners or self employment opportunities? What is, in part, driving these trends? Using a national representative set of data that consists of two waves of surveys done in 2000 and 2008 in six provinces, the paper finds that off farm labor market participation has continued to rise steadily in the early 2000s. However, there has been a structural break in the trends of occupational choice before and after 2000. Unlike before 2000, after 2000 migration's growth accelerated; during this same period the self employed subsector stagnated. The number of wage earning migrants in 2008 was greater than the number of those in the self employed subsector. The data also show that the rise in wage-earning migration is mainly being driven by the younger cohorts. Our analysis also shows that the rise of migration is happening in conjunction with a rising unskilled wage.

Do Employer Groups help with Dairy Farm Employment? Why hasn't the idea caught-on'?

Dairy employer groups began to appear about 2000 in response to employment difficulties as the dairy farm labour market encountered low unemployment. Edkins and Tipples (2002) reported to LEW 10 on the development of the Amuri Dairy Employers Group (ADEG). Since then other groups and enterprises have been established and flourished or failed. In this paper developments since 2002 are considered. Factors promoting their success are contrasted with causes of failure. In that time the labour force in dairy farming has changed radically (Tipples, Callister & Trafford, 2010). The paper considers how these changes have fitted with dairy employer groups and suggests ways in which the benefits experienced could be further developed and shared more widely.