This study examines movements in U.S. real farm wages and whether or not wages tend to converge during 1978-92. Results from the Markov chain analysis support convergence in both the Northeast and the South to a lower wage rate than their respective regional average rates in 1978. A comparison of the time-invariant and actual terminal period distributions indicates that such tendency signals future wages to depress. This further suggests that the over-supply of labor, which manifests itself in the form of lower wages, can be viewed as a symptom of a healthy labor market responding to market signals.
|Original language||English (US)|
|Number of pages||14|
|Journal||Review of Regional Studies|
|State||Published - 1999|
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Earth-Surface Processes