Cultivating compensation: how technology skills and job attributes affect salary in agricultural jobs

Abstract

Technological advancements are transforming the agricultural industry, creating new workforce demands and altering the skills required for employment. This study examines the relationship between technology, skill requirements, education, and salary outcomes in the U.S. agricultural labor market. Job posting data were collected through automated web scraping from online employment platforms and analyzed using text analysis techniques to construct measures of technology intensity, manual skills, and soft skills. Occupations were classified according to their technological content and linked with salary and job characteristic information. Three econometric approaches were employed to evaluate salary determinants: ordinary least squares (OLS), ordered logit, and Heckman selection models. The OLS models estimated the effects of technology, skills, education, occupation, geography, and posting characteristics on salary levels. Ordered logit models examined the factors influencing movement across salary categories, while Heckman selection models corrected for potential bias resulting from the selective disclosure of salary information in job postings. The results indicate that education and skill composition are stronger predictors of salary outcomes than technology alone. Across most specifications, manual and soft skills were positively associated with salary, while higher levels of educational attainment consistently generated substantial wage premiums. Technology variables produced mixed results in the OLS and ordered logit models, suggesting that technological intensity alone does not explain salary variation across agricultural occupations. However, after accounting for salary disclosure bias through the Heckman selection framework, advanced technology positions were associated with higher compensation, indicating that technology-related wage premiums may be partially obscured by selection effects. Overall, the findings suggest that modernization within agriculture is increasing demand for workers who possess a combination of technical, manual, and soft skills, supported by higher levels of education. These results provide valuable insights for students, job seekers, employers, and educational institutions seeking to understand workforce needs in an increasingly technology-driven agricultural sector. The study contributes to the growing literature on agricultural labor markets by highlighting the continuing importance of human capital alongside technological advancements.