Long-Term Trends and Policy Challenges in Chilean Agricultural Labor Markets

Abstract

This paper identifies the major longterm trends in agricultural labor markets in Chile. The document shows the increasing aging, feminization, and seasonality of the agricultural labor force. Long-term projections are made regarding the evolution of labor supply and demand based on demographic and economic trends. These projections suggest the continuation of the already existing trends of a decreasing supply of labor and an increasing demand for agricultural labor, mostly driven by the substitution of crops into labor-intensive but higher-value export crops. Hence, the paper predicts a continuation of the trend of rapidly increasing labor costs in agriculture. The paper discusses the challenges imposed on farmers and policy-makers of confronting these rapidly growing labor costs by continually raising farm labor productivity.