IDEAS home Printed from https://ideas.repec.org/a/ags/saeasj/205951.html
   My bibliography  Save this article

Changes in Labour Market and Domestic Agriculture

Author

Listed:
  • Karunagoda, Kamal

Abstract

Sri Lanka’s economy has undergone significant structural changes during the past two decades. The manufacturing and services sectors show a considerable growth during this period and these changes in the economy seem to have had a greater influence on domestic agriculture. Sri Lanka’s rural areas have witnessed the co-existence of rising wage rates of domestic agricultural sector workers with relatively high unemployment levels. The real price of agricultural output shows a declining trend while the real wage rate in domestic agriculture shows an increasing trend. This study examines the influence of the expansion effect of non-agricultural sector on the real wages of the domestic agriculture during the post reform period. Engle and Granger methodology is used to determine the relationship between real agricultural wage rates, capital formation in non-agriculture and wage rate of export agriculture. The results indicate the presence of a long-term relationship between wage rate and capital formation in the non-agriculture sector. Increase in labour productivity, suitable farm mechanization and institutional changes related to land and labour would help to mitigate the negative influence of rising wage rates on domestic agriculture.

Suggested Citation

  • Karunagoda, Kamal, 2004. "Changes in Labour Market and Domestic Agriculture," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 6, pages 1-17.
    • Handle: RePEc:ags:saeasj:205951
    DOI: 10.22004/ag.econ.205951
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/205951/files/6.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.205951?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Martín Rama, 2003. "The Sri Lankan Unemployment Problem Revisited," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 510-525, August.
    2. Dixit Avinash & Rob Rafael, 1994. "Switching Costs and Sectoral Adjustments in General Equilibrium with Uninsured Risk," Journal of Economic Theory, Elsevier, vol. 62(1), pages 48-69, February.
    3. Larson, Donald & Mundlak, Yair, 1997. "On the Intersectoral Migration of Agricultural Labor," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 295-319, January.
    4. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-638, June.
    5. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    6. Raaj Kumar Sah & Joseph E. Stiglitz, 1987. "Price Scissors and the Structure of the Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(1), pages 109-134.
    7. Timothy J. Richards & Paul M. Patterson, 1998. "Hysteresis and the Shortage of Agricultural Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 683-695.
    8. Bryant, Amy & Richards, Timothy J., 1998. "Hysteresis And The Shortage Of Agricultural Labor," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20858, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pathmanathan, Hamsha & Babu, Suresh Chandra & Pal, Chandrashri, 2017. "Building resilience for food systems in postwar communities case study and lessons from northern Sri Lanka," IFPRI discussion papers 1644, International Food Policy Research Institute (IFPRI).
    2. Athula Ranasinghe & Sunimalee Madurawala & Jen Je Su & Thushara Senadeera, 2016. "An empirical investigation of labor shortage in the manufacturing sector in Sri Lanka," Discussion Papers in Economics economics:201605, Griffith University, Department of Accounting, Finance and Economics.
    3. Vicente E. Montano & Rosalia T. Gabronino & Restie E. Torres, 2019. "The curious relationship between agricultural and energy price index: A Vector Error Correction Model (VECM) analysis approach," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(3), pages 161-177.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feil, Jan-Henning & Musshoff, Oliver, 2013. "Investment, disinvestment and policy impact analysis in the dairy sector: a real options approach," Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers 159229, Humboldt University Berlin, Department of Agricultural Economics.
    2. Tauer, Loren W., 2006. "When to Get In and Out of Dairy Farming: A Real Option Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 339-347, October.
    3. A. Ford Ramsey & Tadashi Sonoda & Minkyong Ko, 2023. "Intersectoral labor migration and agriculture in the United States and Japan," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 364-381, May.
    4. Calum G. Turvey, 2010. "Biography," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(1), pages 5-20, May.
    5. Turvey, Calum G., 2002. "Can Hysteresis And Real Options Explain The Farmland Valuation Puzzle?," Working Papers 34131, University of Guelph, Department of Food, Agricultural and Resource Economics.
    6. Martin Odening & Oliver Mußhoff & Alfons Balmann, 2005. "Investment decisions in hog finishing: an application of the real options approach," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 47-60, January.
    7. Wheatley, W. Parker & Liu, Donald J. & del Ninno, Carlo, 2001. "Empirical Analysis Of Hysteresis In Rural Labor Markets In A Developing Country: The Case Of Bangladesh," 2001 Annual meeting, August 5-8, Chicago, IL 20594, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Ramsey, A. Ford & Sonoda, Tadashi & Ko, Minkyong, 2021. "Aggregation and Threshold Models of Intersectoral Labor Migration: Evidence from the United States and Japan," 2021 Conference, August 17-31, 2021, Virtual 315110, International Association of Agricultural Economists.
    9. Quoc V. Luong & Loren W. Tauer, 2006. "A real options analysis of coffee planting in Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 49-57, July.
    10. Ritter, Matthias & Yang, Xinyue & Odening, Martin, 2017. "Spatial integration of agricultural land markets," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261430, European Association of Agricultural Economists.
    11. Huang, Kuan-Ming & Guan, Zhengfei, 2022. "Increasing minimum wages and farmers’ hiring decisions," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322556, Agricultural and Applied Economics Association.
    12. Emilio Congregado & Antonio Golpe & Simon Parker, 2012. "The dynamics of entrepreneurship: hysteresis, business cycles and government policy," Empirical Economics, Springer, vol. 43(3), pages 1239-1261, December.
    13. Hossain, Akhand Akhtar, 2008. "The Agricultural and the External (Net Barter) Terms of Trade in Bangladesh: Trends, Movements and Relationships, 1952-2006," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 4(1-2), pages 1-15.
    14. Musshoff, Oliver & Odening, Martin, 2005. "Switching from Conventional to Organic Farming – a Real Options Perspective," 89th Seminar, February 2-5, 2005, Parma, Italy 234633, European Association of Agricultural Economists.
    15. Wossink, Ada, 2000. "The Failure Of Marketable Permit Systems And Uncertainty Of Environmental Policy: A Switching Regime Model Applied To The Dutch Phosphate Quota Program," 2000 Annual meeting, July 30-August 2, Tampa, FL 21792, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Pahnke, André & Schneck, Stefan & Wolter, Hans-Jürgen, 2019. "Persistenz von Selbstständigen in der Grundsicherung," IfM-Materialien 273, Institut für Mittelstandsforschung (IfM) Bonn.
    17. Arouri, Mohamed & Jawadi, Fredj & Nguyen, Duc Khuong, 2013. "What can we tell about monetary policy synchronization and interdependence over the 2007–2009 global financial crisis?," Journal of Macroeconomics, Elsevier, vol. 36(C), pages 175-187.
    18. Lofstrom, Magnus & Bates, Timothy & Parker, Simon C., 2011. "Transitions to Entrepreneurship and Industry-Specific Barriers," IZA Discussion Papers 6103, Institute of Labor Economics (IZA).
    19. Ricardo Denadai & Vladimir K. Teles, 2016. "A Test for Hysteresis in International Trade," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 583-598, May.
    20. Brady, Michael P. & Gallardo, R. Karina & Badruddozza, Syed & Jiang, Xiaojiao, 2016. "Regional Equilibrium Wage Rate for Hired Farm Workers in the Tree Fruit Industry," Western Economics Forum, Western Agricultural Economics Association, vol. 15(1), pages 1-12.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saeasj:205951. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/slaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.