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Testing for Disequilibrium in the Hired Farm Labor Market
Author(s) -
Duffield James A.,
Coltrane Robert
Publication year - 1992
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242495
Subject(s) - disequilibrium , economics , economic shortage , labour economics , immigration reform , government (linguistics) , sanctions , cusum , balance (ability) , immigration , immigration policy , operations management , medicine , history , linguistics , philosophy , archaeology , political science , law , ophthalmology , physical medicine and rehabilitation
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.