The debate over dynamics of agricultural wage and rice price In Bangladesh: A re-examination

Working Paper
Subtitle: 
FMRSP Working paper 29

The significance of an understanding of wage-price adjustment is derived from the following two realities in Bangladesh: i) a large proportion of the country’s population relies on labor markets for their livelihood; ii) rice is the country’s main crop and accounts for over three quarters of aggregate calorie consumption. Therefore, the responsiveness of wage to rice price is a good indicator of how lives of the poor evolve over time. In particular, the sluggish adjustment of wage to rice price (even in the short run) can have detrimental effects on the poor whose major source of income is presumed to be wages. This background is the point of departure for a large body of empirical literature on the dynamics of wage formation in Bangladesh. Although issues are well conceived, the empirical results are conflicting and the debate over interpretation of empirical findings is ongoing.

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Date and language
Jan 2001
English
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