Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Benefits Matter in Agriculture Job Displacement

10.05.2010
Common sense suggests that workers without unemployment insurance will often grab the first job that comes their way, even if the new job is low-paying or not a good career match.

Now, a North Carolina State University study suggests that this intuition is true: out-of-work agricultural laborers from small farms that do not provide unemployment insurance spend fewer weeks unemployed and then earn less than other workers when rehired.

Displaced workers from states like North Carolina that do not require small-farm employers to purchase unemployment insurance spend 4.6 fewer weeks unemployed and then earn 9 percent less than displaced manufacturing workers, says NC State’s Dr. Ivan Kandilov, assistant professor of agricultural and resource economics and a co-author of the study.

Meanwhile, displaced agricultural workers from states that require unemployment insurance at small farms – such as California, Texas and Florida – have similar experiences to manufacturing workers when finding a new job and a new salary. Both types of workers are able to utilize their unemployment benefits to find jobs that are a better match with higher salaries, Kandilov says.

“Workers look for good matches when re-entering the workforce, but job searches take time,” Kandilov says. “Workers with unemployment insurance are able to take the time to find a better match, which usually means a better salary. If you don’t have unemployment insurance, you need to get back to work faster. So you wind up taking a worse match, which usually means a lower salary.”

The study, published in the April 2010 edition of American Journal of Agricultural Economics, examined data from the 10 states with the most agricultural employees through the Displaced Workers’ Survey, a large labor survey that is part of the Current Population Survey. Kandilov says that the study showed similar results when both Hispanic workers and seasonal workers were excluded from the data, suggesting that the differences in unemployment insurance are the drivers behind the results, not seasonality or differences in legal status.

Federal regulations require purchase of unemployment insurance if employers pay cash wages to employees of $20,000 or more in any calendar quarter or they employ 10 or more workers on at least one day in 20 different calendar weeks in the current or preceding year. Many states offer unemployment insurance exemptions for small-farm employers, reasoning that participation may be financially onerous to farmers.

States with more generous benefits lower the federal stipulations, Kandilov says. In fact, California treats agricultural workers like manufacturing workers, so there is no small-farm exemption. Five other states in the study – North Carolina, Iowa, Kentucky, Minnesota and Michigan – follow federal rules, so small farms mostly do not offer unemployment insurance to workers.

“The study shows that benefits matter the way that they should,” Kandilov says. “Access to unemployment benefits in different states drives different outcomes for displaced agricultural workers, just as intuition would predict.”

The study was funded by a grant from the U.S. Department of Agriculture.

The Department of Agricultural and Resource Economics is part of the university’s College of Agriculture and Life Sciences.

"Job Displacement from Agriculture"

Authors: Ivan T. Kandilov, North Carolina State University; Amy M.G. Kandilov, RTI International

Published: April 2010 in American Journal of Agricultural Economics

Dr. Ivan Kandilov, 919 513-3713 or ivan_kandilov@ncsu.edu
Mick Kulikowski, 919 515-8387 or mick_kulikowski@ncsu.edu

Dr. Ivan Kandilov | Newswise Science News
Further information:
http://www.ncsu.edu

More articles from Studies and Analyses:

nachricht Real-time feedback helps save energy and water
08.02.2017 | Otto-Friedrich-Universität Bamberg

nachricht The Great Unknown: Risk-Taking Behavior in Adolescents
19.01.2017 | Max-Planck-Institut für Bildungsforschung

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Stingless bees have their nests protected by soldiers

24.02.2017 | Life Sciences

New risk factors for anxiety disorders

24.02.2017 | Life Sciences

MWC 2017: 5G Capital Berlin

24.02.2017 | Trade Fair News

VideoLinks
B2B-VideoLinks
More VideoLinks >>>