The Determinants of the Migration of Labor out of Agriculture in the United States, 1940–85

Abstract

Abstract The flow of labor out of production agriculture is analyzed using a two‐sector model of occupational choice. A migration equation is specified and tested empirically using aggregate data for the United States. The economic determinants of the migration of all farm workers and farm operators are established. Farm labor is found to be responsive to changes in the returns to agricultural labor relative to nonfarm labor returns. Given this responsiveness, policies intended to increase farm income will affect the level of agricultural employment.