Minimum wage increases and agricultural employment of locals and guest workers

Abstract

We estimate the impact of the minimum wage on US farm worker employment by exploiting state‐level variation in recent minimum wage increases. A $1.00 increase in the minimum wage decreases the likelihood of employment for an individual farm worker by around one percentage point, with the effect concentrated among native and naturalized US citizens. However, we find no evidence of a relationship between minimum wage and either the number of farm workers or guest workers. The difference between these results may be due to lower international migration to high minimum wage states. Citizenship and immigration status can influence the impact of labor market regulations on the farm workforce.