Seasonal Adjustment in a Market for Female Agricultural Workers

This article explores seasonal adjustment in the market for temporary agricultural labor. We estimate a model of participation allowing for unobserved heterogeneity and endogeneity/selection bias using daily observations from Chilean panel data, and a model of daily earnings. Results indicate that seasonal wage variation is an important aspect of labor-market adjustment, contributing to a large change in labor force participation. The labor force participation rate of women is significantly more elastic to changes in the expected wage than is that for men. Nonetheless, we find evidence of substantial open unemployment during the slack season, especially for females, probably due to frictional and efficiency wage effects. Copyright 2003 American Agricultural Economics Association.