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Research Article Open Access

WAGE DETERMINATES IN JORDANIAN LABOR MARKET COMPARATIVE STUDY (1976-2009)

Abstract

The study aimed to measure the degree of labor market regulation across business sectors in Jordan through identifying the mechanisms of wage growth determination for the period 1976-2009. Wage determinants in financial sector was less depending on output growth since to take considerable time for wages to adjust to output change unlike other sectors which respond more rapidly but on average with less value than financial sector . Wage and output time series in agricultural, construction, and all sectors were non stationary, this can be a sign of low regulation in these sectors. The financial sector seemed to be regulated since Wage and output time series were stationary and not cointegrated, which mean that wages in short run is not correlated on output and need more time to be. Finally we can say wages growth in Jordanian labor market was random and highly depended on output growth in less regulated markets (construction, agricultural, and whole labor market), while it depended more on ex-output factors in more regulated market (financial sector).

SADAM ALWADI, FIRAS MUHAMMAD AL- RAWASHDI, IBRAHEEM ALSHOMALY

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