Do Agricultural Wages Exhibit Wage Compression? Evidence From Administrative and Worker‐Level Data

Are agricultural wages compressing? Two complementary sources of data—administrative data from the Bureau of Labor Statistics Occupation, Employment, and Wage Statistics (OEWS) and worker‐level data from the National Agricultural Worker Survey (NAWS)—are used to construct wage decile ratios, a standard measure of wage compression. The paper explores whether compression is driven by either changing skill requirements or compositional changes in the agricultural workforce. Results show significant wage compression, attributed to within‐occupation changes. Further, wage compression accelerated significantly in 2020. These dynamics are important for agricultural operators and policymakers who decide which wage‐setting institutions apply to the agricultural sector.