- Draw a graph depicting the supply and demand for farm labor multiple farm labor markets, linked by migration. To simplify things, do this for two adjacent farm labor markets. Briefly explain where the demand and supply curves come from, and explain the meaning of the equilibrium price and quantity in this figure.
The labor demand results from the need to maximize farm profit while the labor supply decision arises from the labor-leisure utility maximization concern. The resulting price and quantity equilibrium depicts the final wages and amount of hired labor in both regions. The contrast in labor supply and demand is impacted by both migrating in and out of these regions.
- Propose a mover-stayer model to depict the migration decisions of seasonal farmworkers featured in Harvest of Shame. Please use your theoretical model to explain why these workers participate in seasonal farm labor migration, despite the apparent hardships they face. Use quotes and excerpts from the film to back up your
Let assume Di represent two location and define it as. If the net income is the underlying cause for migration then the net income of a person i going to region j (j = A or B), can be represented as where c (.) is the cost function and f (.) the income function.
We can deduct from the video which variable relates to Xi and Zi, with few examples:
- Family size fit the income function as large household are a source of more labor. Family size can also be viewed as a cost since it is costly to move.
- Car ownership and distance will impact the mobility of a family. This mostly enters the net income equation as a variable.
- Education also needs to be considered with more educated families or individuals being more productive and thus enter into the income function.
- Murrow says (29:20), “the best hope for the future of the migrants lies in the education of their children.” How would expanded educational opportunities for migrant farmworker children affect the farm labor markets depicted in your figures—in the short run and the long run? How would an increase in schooling affect farm labor-supply decisions depicted in your mover-stayer model? Based on your analysis, is educating migrants’ children a solution to the migrant farm labor problem?
The impact may be ambiguous in the short-run. Although offering an education to the children would reduce labor that each household provides, it may also result in an increased number of families participating in migratory Ag work. These benefits make agricultural work attractive and may cause an increase in the total labor supply of migrant labor.
The impact may lessen the total amount of labor supply in the long run as education allows the new generation to access other professionals.
In the situation where Region A passes a law to permit the children of migratory Ag workers to access free education, this would be shown as a benefit in the mover-stayer model. On the other hand, the school fee would be specified as a cost, and a reduction of fee reduces the cost of moving to Region A.
However, for education to be considered a solution to the migrant farm labor concern, there must be a concisely defined concern. If the issue is poverty, education resources will aid lift migrant households out of poverty. It would also impact the supply and cause an increase in wages.
- What is Murrows’ view on the impacts of immigration in western states’ farm labor markets? Use your model to show how immigration may alter the equilibrium outcome in two or more migration-linked farm labor markets. Do you agree with Murrow’s perception (22:17) of the impacts of immigration in the California farm labor market at the time the film aired? Are the impacts today different? For both of these questions, explain briefly why or why not.
A considerable number of the agricultural labor was domestic during the creation of this documentary. This graph depicts a situation where an infinitely elastic supply of Bracero workers migrating to the US lessens the wages. It is worth noting that with infinite labor supply, the new curve is traced by a thick dotted line. This has the impact of reducing domestic wage from Wdom to Wmex, and reducing the amount of the hired local labor from L to L’.
The current impact is different as the number of workers is tiny. However, in case a new group of migrant is willing to work at lower wage would result in a downward pressure on the farm wages.
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