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The Structure of Wages and Benefits in the U.S. Pork Industry
Author(s) -
Hurley Terrance M.,
Kliebenstein James,
Orazem Peter F.
Publication year - 1999
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 - 10.2307/1244457
Subject(s) - production (economics) , wage , ordered probit , compensation (psychology) , probit model , labour economics , scale (ratio) , business , economics , probit , microeconomics , econometrics , psychology , physics , quantum mechanics , psychoanalysis
Pork production has evolved from relatively small, family‐run operations toward large‐scale operations with several employees. Important questions about the structure of compensation in this rapidly changing labor market are answered using probit and ordered probit models and data from a national survey of pork producers and their employees. The results suggest ( i ) the structure of wages in pork production is consistent with more developed labor markets; ( ii ) employees earn a wage premium for using advanced technology and working in larger operations; and ( iii ) employees are willing to accept lower wages in exchange for better benefits and working conditions.