Abstract :
This study begins by asking whether fluctuations in the price of crude oil have
affected agricultural employment in the USA. After reviewing previous
assessments of the issue, the existence of an empirical relationship between
agricultural employment and crude-oil price volatility is established using
Granger causality. Subsequently, the nature of the relationship is estimated
with the results suggesting that at least three full years are required before the
measurable impacts of a percentage change in the real price of crude oil on
the change in agricultural employment are exhausted. Finally, the structural
stability of the functional relationship between the change in agricultural
employment and the volatility of the price of crude oil, the percentage
changes in expected net farm income, realized technological innovation, and
the wage rate are examined. Copyright
