Empirical evidence from agricultural labor markets is consistent with efficiency-wage theory and inconsistent with several alternative explanations. According to this theory, the higher wage or deferred payment (benefits) that direct-hire growers pay relative to that of farm labor contractors is...

Urban areas tend to have much more productive labor and higher salaries than rural areas, and there are vast differences across urban areas. Areas with high salaries and high productivity tend to have employers that invest in much more research and development than areas with low salaries and...