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Entrepreneurship, Sanctions, and Labor Contracting

Published online by Cambridge University Press:  08 February 2017

Leo C. Polopolus
Affiliation:
Food and Resource Economics Department, University of Florida
Robert D. Emerson
Affiliation:
Food and Resource Economics Department, University of Florida

Abstract

Entrepreneurs innovate their individual business organizations not only to deal with production and price risks, but also to cope with the risk of sanctions or penalties imposed by society's laws and regulations. More specifically, labor-intensive agricultural firms, faced with potentially large fines for violation of immigration and labor laws, increasingly modify the organization of their firms by shifting the management of routine seasonal labor jobs to independent farm labor contractors. The use of labor contracting is further intensified because of the effectiveness of labor contractors in the recruitment of illegal aliens.

Type
Invited Papers and Discussions
Copyright
Copyright © Southern Agricultural Economics Association 1991

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