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Abstract

A cost function approach of induced innovation is used to measure the biases in U.S. agricultural technology between 1948-1994. The results show significant labor-saving, capital-using technical change. Focusing on the impact of migration policy on labor-saving technology, a simulation of different rates of labor-saving technical change is conducted. The simulation shows decreases in elasticity of labor demand and demand quantity, and an increase in wage rate as technology becomes more labor-saving.

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