Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Get Back to Work: Unemployment Benefits Matter in Agriculture Job Displacement

06.05.2010
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.

Mick Kulikowski | EurekAlert!
Further information:
http://www.ncsu.edu

More articles from Agricultural and Forestry Science:

nachricht How much drought can a forest take?
20.01.2017 | University of California - Davis

nachricht Plasma-zapping process could yield trans fat-free soybean oil product
02.12.2016 | Purdue University

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

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

Im Focus: Quantum optical sensor for the first time tested in space – with a laser system from Berlin

For the first time ever, a cloud of ultra-cold atoms has been successfully created in space on board of a sounding rocket. The MAIUS mission demonstrates that quantum optical sensors can be operated even in harsh environments like space – a prerequi-site for finding answers to the most challenging questions of fundamental physics and an important innovation driver for everyday applications.

According to Albert Einstein's Equivalence Principle, all bodies are accelerated at the same rate by the Earth's gravity, regardless of their properties. This...

Im Focus: Traffic jam in empty space

New success for Konstanz physicists in studying the quantum vacuum

An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...

Im Focus: How gut bacteria can make us ill

HZI researchers decipher infection mechanisms of Yersinia and immune responses of the host

Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Sustainable Water use in Agriculture in Eastern Europe and Central Asia

19.01.2017 | Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

 
Latest News

Tracking movement of immune cells identifies key first steps in inflammatory arthritis

23.01.2017 | Health and Medicine

Electrocatalysis can advance green transition

23.01.2017 | Physics and Astronomy

New technology for mass-production of complex molded composite components

23.01.2017 | Process Engineering

VideoLinks
B2B-VideoLinks
More VideoLinks >>>