SIMULTANEOUS EQUATIONS MODEL FOR LABOR MARKET IN THE EGYPTIAN AGRICULTURAL SECTOR | ||
| Arab Universities Journal of Agricultural Sciences | ||
| Article 99, Volume 27, Issue 1, March 2019, Pages 1153-1164 PDF (3.33 M) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/ajs.2019.43862 | ||
| Authors | ||
| Rania R.A. Youssef; Fatma A. Fahmy; Mona K. Ryad | ||
| Agric. Economics Dept., Fac. of Agric., Ain Shams Univ., P.O. Box 68, Hadyek Shoubra 11241, Cairo, Egypt | ||
| Abstract | ||
| The problem of research is the low and low wages in the agricultural sector, which makes it an employment sector, indicating that there is imbalance in the structure of the labor market in the agricultural sector, and thus the current deviation of agricultural employment from the optimum level that achieves economic efficiency, hence the main objective of The research is to assess the equilibrium situation of the labor market in the Egyptian agricultural sector, and determine the most important factors affecting it, through the study of both sides of the demand and supply of agricultural labor through Simultaneous Equations Model. The most important results obtained were: 1 - For the function of demand for agricultural labor: It was found from the estimated equation that the increase in the wages of the agricultural worker by one pound leads to a significant statistical decrease at a significant level of 5% in the demand for agricultural labor by about 135 thousand workers, as shown from the estimated equation Effect of production value Agricultural demand for agricultural employment amounted to about 29.7 thousand workers million workers. The impact of the supply of agricultural labor in the demand for agricultural labor, which reached about 645 thousand workers, was also shown. 2- For the agricultural labor supply function, the estimated equation shows that increasing demand for agricultural labor leads to an increase in the supply of agricultural labor by 1 million and 9,000 workers. It is also shown from the estimated equation that increasing the wage of the agricultural worker by one pound leads to an increase in the supply of agricultural labor by about 39 thousand workers. 3- As for the equilibrium situation of the labor market in the Egyptian agricultural sector, it was found that the wage of the agricultural worker amounted to about 43.338 thousand pounds / year, ie about 118.73 pounds / day, which is different from the actual situation of the wage of the agricultural worker, which averaged 26.164 thousand pounds / year Ie about 71.68 pounds / day as an average for the last three years. This means that the wage of the worker in the agricultural sector is less than the equivalent of 47.05 pounds per day. In addition, the total number of agricultural workers in the agricultural sector reached about 6.34 million workers, which differs from the actual situation of the supply of agricultural labor which reached 7.780 million workers as an average for the last three years. This means increasing the supply of agricultural labor to the balanced size of agricultural labor by (1.44 million workers), which explains the low wages in the agricultural sector, in order to load the agriculture sector with a larger number of workers than is supposed to be and hence the low wage in the agricultural sector and thus become an employment sector that will negatively affect the attractiveness of investments in the agricultural sector Which represents a sector Wide in the Egyptian economy is not negligible. | ||
| Keywords | ||
| Simultaneous Equations Model Agricultural labor market | ||
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