An Econometric Model of Agricultural Wages in Bangladesh

In recent years, a consensus is emerging in favour of the trickle down hypothesis in traditional agriculture. However, any convincing evidencewas still lacking in the Bangladesh context. To fill up this gap, the wage models of Rahman (1993) and Ravallion (1994) have shown that agricultural production affects rural wages positively in the short run,which may be interpreted to constitute evidence in favour of the trickle down hypothesis in the short run, but any long run evidence could not be discerned. However, this seems to suggest that possibly one required only the right sort of model for the purpose. To this end, this paper an error correction model of rural wages, which shows that agricultural production has significant favorable impact on rural wages in the long run. This may have obvious implications for designing poverty alleviation policies.

How good is this research?
Assessing the quality of research can be a tricky business. This blog from our editor offers some tools and tips.
Read now

Related content

Document
Subsidy reform and distributive justice in fisheries
E. Merayo, I. Porras, S. Harper, P. Steele, E. Mohammed / International Institute for Environment and Development, 2019
While most fisheries are already overexploited, many governments allocate capacity-enhancing subsidies to the fishing sector, encouraging further overfishing. Target 14.6 of Sustainable Development Goal 14 and WTO negotiations to eliminate harmful subsidies both call for action on reform.
Document
How do the state’s organisational capacities at the micro- and macro-levels influence agriculture-nutrition linkages in fragile contexts?
J. Gupte, R. Longhurst / Leveraging Agriculture for Nutrition in South Asia, 2019
This paper systematically reviews the evidence on what capacities the state requires to leverage agriculture for nutrition in fragile contexts, maintaining a focus on state in South Asia (especially India).
Document
Principles of innovation to build nutrition-sensitive food systems in South Asia
D. Glover, N. Poole / Leveraging Agriculture for Nutrition in South Asia, 2019
Innovations within global food systems have contributed to the predicament known as the triple burden of malnutrition – the co-existence of hunger and micronutrient deficiency with the diseases of overnutrition, such as obesity, diabetes and hypertension.
Document
Women’s agricultural work and nutrition in South Asia: From pathways to a cross-disciplinary, grounded analytical framework
N. Rao, H. Gazdar, D. Chanchani, M. Ibrahim / Leveraging Agriculture for Nutrition in South Asia, 2019
In this systematic review, the authors aim to examine the impact of women’s work in agriculture on maternal and child nutrition in South Asia. Building on previous reviews supported under the Leveraging Agriculture for Nutrition in South Asia (LANSA) consortium, and recent published literature, we include findings from new LANSA research.
Document
Interventions in agriculture for nutrition outcomes: A systematic review focused on South Asia
F.A. Bird / Leveraging Agriculture for Nutrition in South Asia, 2019
Research on the potential impact of interventions in agriculture on nutrition outcomes is of particular relevance in South Asia where agriculture-related activities are a major source of livelihoods for large sections of society and where the population suffers from one of the highest global burdens of malnutrition in all its forms.

Eldis

An Econometric Model of Agricultural Wages in Bangladesh