THE PRICE OF FOOD, LABOR SCARCITY AND THE REAL WAGE: Egypt, 1950 to 1974

Richard Grabowski and David Sivan*

Pakistan Journal of Applied Economics, 1985, vol. 4, issue 2, 93-100

Abstract: In many less developed nations, agricultural production is becoming more and more capital intensive. Some attribute this increased capital intensity to distortions in factor input prices. In this short paper an alternative explanation is developed and empirically tested. It is hypothesized that in less developed nations, where food consumption is low, as food prices rise relative to other items generally purchased by individuals in agriculture, families will find their ability to work impaired, the supply of labor will decrease, and, ceteris paribus, the real wage will tend to rise. Thus, some mechanization of farming activities may be due to the increased costliness of labor.

Date: 1985
References: Add references at CitEc
Citations:

Downloads: (external link)
http://aerc.edu.pk/wp-content/uploads/2017/03/3rd-Paper-Page-93-100-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pje:journl:article1985winii

Access Statistics for this article

More articles in Pakistan Journal of Applied Economics from Applied Economics Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Samina Khalil ( this e-mail address is bad, please contact ).