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Wage Differential in an Islamic Framework

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  • Syed Kanwar Abbas, Kanwar

Abstract

The establishment of an Islamic society can itself remove many social and economic evils. Although differences between the poor and the rich generate a 'balanced economic society', they do not affect the glory of man. The departure of the Islamic economic agents from non-Islamic economic agents is due to the motivation behind economic decisions. The utility function of an Islamic employee consists of Divine will, Master pleasure, Wages and Effort level. The degree of Aman matters in worship and economic decisions and leads to wage differential in the labour market.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9562.

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Date of creation: Jan 2006
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Publication status: Published in Thoughts on Economics, The Quarterly Journal of Islamic Economics Research Bureau 1.16(2006): pp. 47-53
Handle: RePEc:pra:mprapa:9562

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  1. Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November.
  2. Yellen, Janet L, 1984. "Efficiency Wage Models of Unemployment," American Economic Review, American Economic Association, vol. 74(2), pages 200-205, May.
  3. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290 National Bureau of Economic Research, Inc.
  4. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
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