Econometric Analysis of the Agricultural Labor Market

Abstract Previous research on the market for agricultural labor is extended through the use of a simultaneous‐equations model consisting of six equations. The model treats the markets for unpaid family and operator labor, both of which have been slighted in previous work, and takes account of the interdependence among the three components of the agricultural labor force. The demand and supply elasticities were found to differ substantially among the components. Economic implications suggested by the statistical results are analyzed, and the structural models are used to evaluate a number of alternative policies that bear on labor use and labor returns.