Providing farmworkers with health insurance is worth it for their employers – new research
Farmworkers at
Agricultural employers who provide farmworkers with health insurance earn higher profits, even after accounting for the cost of that coverage. In addition, farmworkers who get health insurance through their employers are more productive and earn more money than those who do not.
These are the key findings from our study published in the
To conduct this research, we crunched over three decades of data from the
We determined that if 20% more farmworkers got health insurance coverage, they would have earned
Why it matters
Roughly half of
Some of them, including grape producers, are responding by investing more heavily in labor-saving equipment, which helps reduce the need for seasonal manual labor. However, automated harvesting isn't yet a viable or affordable option for labor-intensive specialty crops such as melons and strawberries.
Despite labor shortages, agricultural employers may be reluctant to increase total compensation for farmworkers. They may also be wary of providing additional benefits such as health insurance for two main reasons.
First, seasonal workers are, by definition, transient, meaning that the employer who provides coverage may not necessarily be the same one who benefits from a healthier worker. Second, it costs an employer money but doesn't necessarily benefit them in the future if the worker moves on.
Most
As the share of farmworkers who are unauthorized immigrants has declined, the share who are
The low wages farmworkers earn offer little incentive for more
Farmworkers who lack legal authorization to be in the
Limited access to health care is an unfortunate reality for farmworkers, whose jobs are physically demanding and dangerous. In addition, farmworkers are paid at or near the minimum wage and are constantly searching for their next employment opportunity. This uncertainty causes high levels of stress, which can contribute to chronic health issues such as hypertension.
What still isn't known
It is hard to estimate the effect of employer-provided health insurance on workers and employers, since labor market outcomes are a result of highly complex interactions.
For example, wages, productivity and how long someone keeps their job are highly interdependent variables determined by the interaction between what workers seek and what employers offer. And wages do not always reflect a worker's skills and abilities, as some people are more willing to accept a job with low pay if their compensation includes good benefits such as health insurance.
The Research Brief is a short take about interesting academic work.
The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.



Hearing on State Farm’s 22% emergency rate hike request starts this week
Business Insurance Market (BIM) Offers Tailored General Liability Contractors Insurance for Small Businesses and Commercial Enterprises
Advisor News
- The modern advisor: Merging income, insurance, and investments
- Financial shocks, caregiving gaps and inflation pressures persist
- Americans unprepared for increased longevity
- More investors will seek comprehensive financial planning
- Midlife planning for women: why it matters and how advisors should adapt
More Advisor NewsAnnuity News
- LIMRA: Annuity sales notch 10th consecutive $100B+ quarter
- AIG to sell remaining shares in Corebridge Financial
- Corebridge Financial, Equitable Holdings post Q1 earnings as merger looms
- AM Best Assigns Credit Ratings to Calix Re Limited
- Transamerica introduces new RILA with optional income features
More Annuity NewsHealth/Employee Benefits News
- Rob Schofield: NC’s new Medicaid ‘compromise’ comes at a cost
- We have to stop this with our votes | RODNEY WALKER
- MCCLELLAN INTRODUCES BILL TO HELP VIRGINIANS KEEP THEIR MEDICAID COVERAGE
- The Spine of Justice Roberts
- SENATE APPROVES BILL TO LIMIT PREMIUM INCREASES, PROTECT ACCESS TO HEALTHCARE
More Health/Employee Benefits NewsLife Insurance News
- 2025 Insurance Abstracts
- AM Best Assigns Credit Ratings to Tokio Marine Newa Insurance Co., Ltd.
- Earnings roundup: Prudential works to save ‘unique’ Japanese market
- How life insurance became a living-benefits strategy
- Financial Focus : Keep your beneficiary choices up to date
More Life Insurance News