Wage Determination in the Rural Labour Market-The Case of Punjab and Haryana

This paper is an attempt to identify the factors which play an important role in the process of wage determination in the most developed agricultural regions of the country, i e, Punjab and Haryana, The paper is divided into three sections. In Section I there is a discussion of the probable role of supply and demand factors in the determination of market clearing wage in the agrarian setting of Punjab and Haryana, A formal model of wage determination in terms of demand-supply factors is presented in Section Il. The results obtained by applying our model to the district level data of Punjab and Haryana and certain conclusions and policy implications are discussed in Section llI.