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Analysis of Wage Formation Processes In Rural Agriculture
- The Journal of Developing Areas
- Tennessee State University College of Business
- Volume 38, Number 1, Fall 2004
- pp. 79-92
- 10.1353/jda.2005.0002
- Article
- Additional Information
The subject of wage determination in rural agricultural labor markets has continued to attract debate while remaining totally unresolved. This paper offers an analysis and empirical study of wage determination in a rural (tropical/sub-tropical) agricultural environment, and finds that, based on the notion of efficiency wages, a two-tier situation explains why rural wage rates are known to vary widely among workers and across regions.