National and regional analysis of convergence of real wages in the U.S. agricultural sector

This study investigates convergence of real wages for hired farm labor in U.S. counties from 1978 to 1992. The analysis is conducted at the national and regional levels to examine the effect of exogenous factors on long-run convergence in wages. The analysis tests whether real farm wages are sufficiently flexible to adjust to region-specific and national shocks to labor productivity. The findings support convergence at the national and regional levels. The results imply that regional and national agricultural policies contribute to the elimination in wage differences between high wage and low wage counties. Convergence also supports the mobility of labor across counties.