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Abstract

We investigate wage settings in an experimental labor market to measure the effect of otherwise unobservable labor market characteristics on Hispanic job-seekers’ employment and wages. Agricultural and non-agricultural labor markets were simulated by controlling the student’s answer in a questionnaire about whether he or she is working or plans to work on a farm or rural county after graduation. This paper presents evidence supporting the existence of differences in discrimination on urban and rural markets. Average predicted productvity for Hispanic males in rural market was higher than in urban labor maket, suggesting that Hispanics male job-seekers are predicted to fit better in rural activities which may imply an invisible barrier that prevents their mobility from rural to urban labor market.

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