Wednesday 27 February 2013

Author(s): Richard Mahapatra, Jitendra

  • The conflict between the

    The conflict between the Minister of Agriculture (who thinks higher agricultural wages are bad because they make agriculture less profitable) and the Minister of rural development (who welcomes wage rises because they decrease rural poverty) is interesting. Another aspect, related to the Minister of Agriculture's concern, is that higher wages could in fact be seen as something that will lead to higher agricultural productivity. One could say that there is a parallell to the and could in fact be related to the solidarity wage policy which was practised on the Swedish labour market from the 1950's. The solidarity wage policy meant that wages were negotiated centrally and set at a level that meant that the most productive companies made good profits while the least productive fell by the wayside. This helped to hasten structural transformation in which employees in low-productive companies would move to highly productive companies, while wage-earners in the public sector and low-productive companies could increase their pay. The structural transformation of society was hastened when the wage levels between different sectors and regions were evened out. The policy has sometimes been called ÔÇ£flyttlasspolitikÔÇØ, literally ÔÇ£moving van policyÔÇØ, the Swedish equivalent of the British ÔÇ£on your bikeÔÇØ.

    Posted by: Anonymous | 3 years ago | Reply
Scroll To Top