An Assessment and Determinants of Real Wage: A Macroeconomic Overview of Bangladesh

Abstract

Real wage is an imperative factor to derive the purchasing power of the people as well as to measure the welfare level. It deserves to critically analyze the real wage of the people for adopting necessary policy in order to optimize social welfare. Escalating Real wage appeared as a key driving force to reduce the poverty level in Bangladesh in past decade). The chief objective of this of this study is to examine the implication of real wage in the present context of Bangladesh and justify the present state real wage of from the aspect of national well being. It is appeared in the study that there is a significant difference in the mean real wage between agriculture, general and manufacturing sector of Bangladesh. No significant difference is found between the mean real wage of agriculture and construction sector. it is flickered in wage determination model that co-efficient of education and training variables are dominant and keeping effective role in wage determination both in rural and urban areas of Bangladesh. It deserves special mention that minimal increase in the real wage of agriculture compared to other sector unable to increase the rice equivalent wage for agricultural labor. Which exposed the welfare drop in agriculture sector, revealed in the study.