FLC Usage Among California Growers under IRCA: An Empirical Analysis of Farm Labor Market Risk Management

Recent immigration reform efforts have been ineffective at controlling the flow of illegal immigration. Concurrently, a structural change occured in the agricultural sector as farm labor contractor (FLC) usage expanded. The FLC sector is, arguably, evolving due to the tighter regulatory and risk environment faced by producers. Using probit analysis of survey data from California growers, this study analyzes labor contracting patterns. Differences are found among regions, commodities, and several grower characteristics. However, the significant role of risk perceptions and management attitudes are of greatest interest given the absence of labor issues in agricultural risk management programs. Copyright 1996, Oxford University Press.