between 10% and 18% for unauthorized workers that become adjusted to legal status. The
findings are broadly consistent with previous work that assessed the earnings implications of
legalization. Isé and Perloff (1995) estimated average wage increases of about 15% for
unauthorized workers that are granted amnesty; if they were to become permanent residents
however, their wages would increase by about 12%. Iwai, Emerson and Walters (2006a) found
that unauthorized workers who gained legal status would, in general, earn higher wages. Wages
would increase by as much as 31%: for example, unauthorized workers who selected into
temporary authorized status had wage increases between 6% and 31% after 2001.6
Such results suggest cost increases for farm employers of unauthorized workers. Given
the large percentage of the farm workforce that is currently unauthorized for US employment,
the increased cost may be substantial for employers with large proportions of unauthorized
workers among their crews, and for whom labor costs comprise significant portion of total cost.
Employers may respond by using other production factors more intensively; Napasintuwong
(2004) suggested that the degree of intensity to which capital and labor are used in agriculture
have been affected by the availability of immigrant labor, which is in turn affected by
immigration policy.
Concluding Remarks
This study sought to analyze the potential impact of proposed legalization on the wage
outcomes of foreign farm workers. The results provide some insight as to how future legalization
could impact farm wages and, by extension, labor costs for employers. The key distinction
between this study and previous work is analytical framework: this study approached the
problem from a treatment effects perspective with legalization modeled as a policy intervention
6 These are based on specific simulations that account for location, time, payment type, etc. See Iwai, Emerson and
Walters (2006a) for details.
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