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Local Labor Market Conditions: Effects on Labor Demand and Wage Labor Supply Decisions of Farm and Rural Nonfarm Couples, 1978-82

Wallace E. Huffman

Abstract

The objective of ,this .paper is to examine the effects of geographical differences in local economic conditions—[both anticipated (permanent) and unanticipated (-transitory).—on wage labor demand and labor force participation decisions of-U.S. farm and rural nonfarm couples. Farm and rural nonfarm households in some regions of the U.S., e.g., the upper midwest, were adversely affected by changes in local economic conditions that occurred during 1978-.tp 1982, (U.S.v, Dept. Agr. 1987). Households in the southwest faired better. Part of.-these effects seems to be driven by changes in local labor market conditions.

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Key concepts: Nonfarm payrolls, Economics, Labor demand, Wage, Secondary labor market, Labour economics, Labor relations, Supply and demand