Agricultural Economics & Economics

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Situated jointly within MSU's College of Agriculture and College of Letters and Sciences, our department offers a unique opportunity for students with diverse interests to learn skills in critical analysis, logical problem solving, data and policy analysis, written and oral communication, business management. We train individuals who will make a big difference in the world by applying solid critical thinking skills. Our award-winning faculty has expertise in a wide variety of fields. We conduct cutting-edge research and teach a myriad of courses.

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Now showing 1 - 3 of 3
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    Housing booms and H‐2A agricultural guest worker employment
    (Wiley, 2022-05) Castillo, Marcelo; Charlton, Diane
    This paper examines the effects of changes in housing demand on H-2A employment within commuting zones from 2001-2017. Agricultural employers who demonstrate that no workers in the domestic labor market are willing or able to perform a seasonal or temporary farm job can apply for certification to hire guest workers through the H-2A visa program. H-2A employment grew more than 450% between 2001 and 2019 from 45,000 to 258,000. This is one of the first papers to econometrically examine causal factors that contributed to the growth of H-2A employment. We find that a 1% increase in housing demand leads to a 0.40-0.97% increase in H-2A employment. We also show suggestive evidence that changes in housing demand affect H-2A employment through shifts in the demand for workers in non-farm industries that pull workers from the agricultural sector. Consistent with previous literature, we show that positive housing demand shocks lead to increased employment in construction and other nontradable sectors that traditionally hire immigrant workers. We also find positive effects of housing demand on local farm wages, consistent with an inward shift in the local farm labor supply during housing booms.
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    Seasonal agricultural activity and crime
    (Wiley, 2021-09) Charlton, Diane; James, Alexander; Smith, Brock
    Sudden shocks to labor demand have sometimes been shown to increase local crime rates. We build on this literature by estimating the causal effect of labor-intensive seasonal agricultural activity on crime. We analyze a unique data set that describes criminal activity and fruit, vegetable, and horticultural (FVH) employment by month and U.S. county from 1990 to 2016. We find that the FVH labor share is associated with reduced property and violent crime rates, and possibly the number of property crimes committed within county years. Examining heterogeneities based on ethnicity, labor-intensive FVH activity decreases the rate of non-Hispanic arrests and victimization, and increases the number of Hispanic arrests and victims (consistent with rising local Hispanic populations). Taken together, results are broadly consistent with the idea that agricultural harvest of labor-intensive crops enhances local labor market opportunities that reduce incentives to commit crimes. Results are robust to a battery of alternative specifications that address the inherent challenges associated with measuring seasonal agricultural labor.
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    Seasonal agricultural activity and crime
    (Wiley, 2021-09) Charlton, Diane; James, Alexander; Smith, Brock
    Sudden shocks to labor demand have sometimes been shown to increase local crime rates. We build on this literature by estimating the causal effect of labor-intensive seasonal agricultural activity on crime. We analyze a unique data set that describes criminal activity and fruit, vegetable, and horticultural (FVH) employment by month and U.S. county from 1990-2016. We find the FVH labor share is associated with reduced property and violent crime rates, and possibly the number of property crimes committed within county-years. Examining heterogeneities based on ethnicity, labor intensive FVH activity decreases the rate of non-Hispanic arrests and victimization and increases the number of Hispanic arrests and victims (consistent with rising local Hispanic populations). Taken together, results are broadly consistent with the idea that agricultural harvest of labor-intensive crops enhances local labor market opportunities that reduce incentives to commit crimes. Results are robust to a battery of alternative specifications that address the inherent challenges associated with measuring seasonal agricultural labor
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