Hurley, Terrance M.; Kliebenstein, James; Orazem, Peter

American Journal of Agricultural Economics Vol. 81 no. 1 (February 1999): 144-163.

Pork production has evolved from relatively small, family-run operations toward large-scale operations with several employees. Important questions about the structure of compensation in this rapidly changing labor market are answered using probit and ordered probit models and data from a national survey of pork producers and their employees. The results suggest (i) the structure of wages in pork production is consistent with more developed labor markets; (ii) employees earn a wage premium for using advanced technology and working in larger operations; and (iii) employees are willing to accept lower wages in exchange for better benefits and working conditions.

Key words: benefits, compensation, earnings functions, hog production, technology, wages.