FARM MECHANIZATION AND THE FARM LABOR MARKET: A SOCIOECONOMIC MODEL OF INDUCED INNOVATION
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A cost function approach of induced innovation is used to measure the biases in U.S. agricultural technology between 1969-1999. The rate of technological change is explained by socioeconomic variables. The post-IRCA results show that an increasingly illegal workforce significantly induces contract labor using technology, and significantly induces capital saving technology.