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LATEST NEWS UPDATES | Link between Food Price Inflation and Rural Wage Dynamics -Atulan Guha and Ashutosh Kr Tripathi

Link between Food Price Inflation and Rural Wage Dynamics -Atulan Guha and Ashutosh Kr Tripathi

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published Published on Jun 29, 2014   modified Modified on Jun 29, 2014
-Economic and Political Weekly

 

 

In exploring the link between food price inflation and rising rural real wages, this paper examines the dynamic relations between rural wages in different sectors and the relationship these wages share with increasing food prices. It looks into the possibility of a Lewsian transformation causing an increase in real rural wages, but the result of the analysis suggests that the rise in wages is because of an increase in bargaining power due to public works programmes, which employ unskilled rural workers. Food price inflation induces them to bargain for higher wages.

Atulan Guha (atulan@irma.ac.in) is at the Institute of Rural Management Anand and Ashutosh Kr Tripathi (ashutosh_cds@yahoo.co.in) at the Indian Institute of Management, Rohtak.

We would like to thank Ravikiran for helping us generate Tables 3 and 4. A preliminary version of this paper was presented at the Department of Economics, Visva-Bharati University, in March 2013 under the Special Assistance Programme. We would also like to thank an anonymous referee of this journal for his/her suggestions.

Please click here to download the full paper. 


Economic and Political Weekly, Vol-XLIX, No. 26-27, June 28, 2014, http://www.epw.in/review-rural-affairs/link-between-food-price-inflation-and-rural-wage-dynamics.html


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