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Rural Wages in Asia

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  • Wiggins, Steve
  • Keats, Sharada

Abstract

Rural wages in developing countries not only directly affect the welfare of many of the (very) poor, but they also affect the welfare of others through their impact on costs of food production and hence food prices. Since manufacturing in low income countries often recruits labour from the countryside, rural wages set the minimum level of factory wages 3 necessary to attract labour, and hence costs of production and thereby the growth of manufacturing. Rural wages in much of Asia seem to have been rising notably over the last 25 years or longer, with signs in some countries of accelerating increases since the mid-2000s. This study compiles the evidence for this; then examines the influence of potential determinants, including changes in agricultural labour productivity, manufacturing, and rural working population, on rural wages. It concludes by discussing the possible implications of the results for rural poverty, food prices and the location of manufacturing

Suggested Citation

  • Wiggins, Steve & Keats, Sharada, 2015. "Rural Wages in Asia," 2015 Conference, August 9-14, 2015, Milan, Italy 212615, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212615
    DOI: 10.22004/ag.econ.212615
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    File URL: http://ageconsearch.umn.edu/record/212615/files/Wiggins-Rural%20wages%20in%20Asia-647.pdf
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    References listed on IDEAS

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    1. Ximena V. del Carpio & Julián Messina & Anna Sanz‐de‐Galdeano, 2019. "Minimum Wage: Does it Improve Welfare in Thailand?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(2), pages 358-382, June.
    2. Hanan G. Jacoby, 2016. "Food Prices, Wages, And Welfare In Rural India," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 159-176, January.
    3. Gary S. Fields, 2004. "Dualism In The Labor Market: A Perspective On The Lewis Model After Half A Century," Manchester School, University of Manchester, vol. 72(6), pages 724-735, December.
    4. Zhang, Xiaobo & Rashid, Shahidur & Ahmad, Kaikaus & Mueller, Valerie & Lee, Hak Lim & Lemma, Solomon & Belal, Saika & Ahmed, Akhter U., 2013. "Rising wages in Bangladesh:," IFPRI discussion papers 1249, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Community/Rural/Urban Development; International Development;

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