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Why are the wages for farm labourers in Palampur less than min... - Economics
Why are the wages for farm labourers in Palampur less than minimum wages?
The wages for farm labourers in Palampur are less than the minimum wages for the following reasons:
Heavy Competition: There is intense competition for work among the farm labourers in Palampur.
High Supply of Labour: The number of people looking for work is much higher than the actual demand for labour.
Low Bargaining Power: Due to the high competition, labourers are willing to work for lower wages just to secure a job, as they cannot afford to stay unemployed.
Lack of Alternative Employment: Since there are limited non-farm activities, labourers have no choice but to accept whatever wage is offered by the large farmers.