Socioeconomic impact of automation on horticulture production firms in the northern Gulf of Mexico region

Abstract

Using results of a socioeconomic survey of nurseries and greenhouses, Tobit regression analysis was used to estimate empirical models to measure the socioeconomic impact of automation or mechanization on annual gross sales, annual employment, and workers' earnings, safety, and retention. The survey was conducted among 87 randomly selected nurseries and greenhouses located in Mississippi, Louisiana, and Alabama, from Dec. 2003 to Mar. 2005. About 20% of all the identified major tasks were performed by workers in nurseries and greenhouses with some form of mechanization or automation. Regression results showed that nurseries and greenhouses that experienced higher levels of sales also demonstrated higher levels of automation or mechanization. The employment impact of automation or mechanization was neutral, indicating that any improvement in automation or mechanization did not necessarily lead to a reduction, but instead to a more efficient use of labor by nurseries and greenhouses. Improvements in automation or mechanization resulted in higher total workers' earnings reported by participating nurseries and greenhouses. Further Tobit regression results showed that automation or mechanization had neutral effects on the length of training period, workers' safety, and retention rates and enabled nurseries and greenhouses to hire less-skilled workers.