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 Europe’s Demographic Future. Where the Regions Are Heading after a Decade of Crises
10.08.2017 | Berlin-Institut für Bevölkerung und Entwicklung

nachricht Scientists reveal source of human heartbeat in 3-D
07.08.2017 | University of Manchester

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: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

Gold shines through properties of nano biosensors

17.08.2017 | Physics and Astronomy

Greenland ice flow likely to speed up: New data assert glaciers move over sediment, which gets more slippery as it gets wetter

17.08.2017 | Earth Sciences

Mars 2020 mission to use smart methods to seek signs of past life

17.08.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>