Volume 11, Issue 3 (2011)                   QJER 2011, 11(3): 93-110 | Back to browse issues page

‎ 20.1001.1.17356768.1390.11.3.3.5

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Nessabian S, Ghavidel S, Fathabadi M. Wage Gap between Agricultural and Non-agricultural Labor Force in Iran. QJER 2011; 11 (3) :93-110
URL: http://ecor.modares.ac.ir/article-18-3958-en.html
Wage Gap between Agricultural and Non-agricultural Labor Force in Iran
Shahriar Nessabian * 1, Saleh Ghavidel2 , Mehdi Fathabadi3
1- Assistant Professor, Department of economics, Islamic Azad University, Centeral Tehran Branch
2- Assistant Professor, Department of Economics, Islamic Azad University, Firuzkoh Branch
3- Department of Economics Islamic Azad University, Firuzkoh Branch
Abstract:   (5464 Views)
Using Haskel theory, in this paper the main factors of change in wage ratios of agricultural and non-agricultural labor force are explored. Theoretically, the wage gap between these two sectors is explained by the gap between price and the one between TFP of these two sectors. In recent years, the wage gap between the two sectors has been decreasing in Iran. The international trade model (Haskel model) has been used in this paper and the results reveal that the major factor contributing to wage gap is the price one. The TFP is considered insignificant for wage gap. Mainly, the reason for increasing agricultural product index price, compared to that of non-agricultural index price has been government protection of agricultural products during these years.
Keywords: International trade, Wages gap, Haskel Theory, Price ratio
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Received: 2010/10/26 | Accepted: 2011/05/15 | Published: 2011/10/10
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