Working Papers

Effects of the Great Recession on the U.S. Agricultural Labor Market


Recessions typically lead to excess supply in nonagricultural labor markets. However, a major recession, like the Great Recession, has different effects in the seasonal agriculture labor market. During such recession, hourly earnings of workers, the probability that workers receive bonuses, and employed workers’ weekly hours rise. These results are consistent with a large reduction in immigrant labor supply during a major recession. Direct and indirect evidence on immigration supports this conclusion.