Why are the wages for farm labourers in Palampur less than minimum wages?

+1 vote
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asked Jan 14, 2018 in Economics by Golu (37,045 points) 19 144 412

Why are the wages for farm labourers in Palampur less than minimum wages?

1 Answer

+1 vote
answered Jan 14, 2018 by Golu (37,045 points) 19 144 412
 
Best answer

There is more supply of workers than the demand. Due to this, the workers are not in a position to bargain from their employers. Hence, the wages for farm labourers are less than minimum wages.

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