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Structure Of Wages And Benefits In The U.S. Pork Industry

Author

Listed:
  • Terrance M. HURLEY
  • James Kliebenstein
  • Peter F. ORAZEM
Abstract
Pork production has been evolving from relatively small, family- run operations toward large-scale operations with several employees. This study uses a national survey of pork producers and their employees to answer several questions about the structure of wages and benefits in this rapidly changing labor market. The findings include: 1) wages do not differ across regions of the country but, instead, reflect differences in worker skills and firm size consistent with a nationally competitive labor market; 2) there is no evidence that large producers have market power in local labor markets that enable them to pay lower wages than competitors; 3) rather; large firms pay higher wages, offer better benefits, and safer working environments than smaller firms; 4) the wage premiums in larger firms seem to be partly explained by the greater use of skill- intensive technologies in large firms; 5) the remaining wage premium in large firms seems to be consistent with returns to scale that are partly shared with labor; 6) salary, benefits, and a safe working environment all contribute to worker job satisfaction so that firms offering better working conditions and benefits can pay lower salaries than competitors with fewer benefits or inferior working environments.

Suggested Citation

  • Terrance M. HURLEY & James Kliebenstein & Peter F. ORAZEM, 1996. "Structure Of Wages And Benefits In The U.S. Pork Industry," Staff Papers 283, Iowa State University Department of Economics.
    • Handle: RePEc:isu:isuesp:283
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    File URL: http://purl.umn.edu/18273
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    References listed on IDEAS

    as
    1. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602, Elsevier.
    2. Gunderson, Morley, 1989. "Male-Female Wage Differentials and Policy Responses," Journal of Economic Literature, American Economic Association, vol. 27(1), pages 46-72, March.
    3. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    4. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-1059, October.
    5. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    6. Terrance M. Hurley & James B. Kliebenstein & Peter F. Orazem, 2000. "An Analysis of Occupational Health in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 323-333.
    7. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Terrance M. Hurley & James B. Kliebenstein & Peter F. Orazem, 2000. "An Analysis of Occupational Health in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 323-333.
    2. Yu, Li & Hurley, Terrance M. & Kliebenstein, James B. & Orazem, Peter F., 2012. "Firm Size, Technical Change, and Wages in the Pork Sector, 1990-2005," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(2), pages 1-17, August.
    3. Bitsch, Vera & Harsh, Stephen B., 2004. "Labor Risk Attributes in the Green Industry: Business Owners' and Managers' Perspectives," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(3), pages 731-745, December.
    4. Li Yu & Peter F. Orazem, 2014. "O-Ring production on U.S. hog farms: joint choices of farm size, technology, and compensation," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 431-442, July.
    5. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    6. Cho, Seung Jin & Lee, Jun Yeong & Winters, John V., 2020. "COVID-19 Employment Status Impacts on Food Sector Workers," ISU General Staff Papers 202006080700001107, Iowa State University, Department of Economics.
    7. Adhikari, Bishwa B. & Harsh, Stephen B. & Cheney, Laura Martin, 2003. "Factors Affecting Regional Shifts Of U.S Pork Production," 2003 Annual meeting, July 27-30, Montreal, Canada 22200, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Bitsch, Vera & Harsh, Stephen B. & Mugera, Amin W., 2003. "Risk In Human Resource Management And Implications For Extension Programming - Results Of Focus Group Discussions With Dairy And Green Industry Managers," 2003 Annual meeting, July 27-30, Montreal, Canada 22085, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Marsh, John M. & Brester, Gary W., 1999. "Technological Change In The U.S. Beef And Pork Sectors: Impacts On Farm-Wholesale Marketing Margins And Livestock Prices," Research Discussion Papers 29242, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    10. Lazarus, William F. & Platas, Diego E. & Morse, George W., 2002. "IMPLAN's Weakest Link: Production Functions or Regional Purchase Coefficients?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(1), pages 1-17.
    11. Yu, Li, 2008. "Three essays on technology adoption, firm size, wages and human capital," ISU General Staff Papers 2008010108000016715, Iowa State University, Department of Economics.

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