The Impact of Wage Differentials on Choosing to Work in Agriculture

Based on a model of industry choice and wage determination, a 1% increase in the relative wage in agriculture increases the probability that a nonurban male with no more than a ninth-grade education works in agriculture by 3.37% at the sample mean and by 1.3% when averaged over the entire sample. A 10% increase in wages may increase the proportion of those males who choose to work in agriculture by nearly a quarter.