Manpower, labour market and wage development : the case of Jordan
This thesis examines the Jordanian case concerning the importance
of manpower resources in general, and the issue of manpower migration in
particular in a developing economy characterised by a lack of natural
resources. It focuses its investigation on the kind of economy with manpower shortages that interacts in the labour market and influences the
process of wage development and the magnitude of wage differentials for
various groups of manpower and across various sectors of employment. The
thesis is firmly based on data gathered by a special survey conducted in
Jordan and covered various governmental and non-governmental establishments
operating in the domestic economy throughout the period 1970 to 1983.
The findings of this thesis showed that manpower emigration and the
shortages it caused has stimulated pressure for higher wages, and yielded
a more pragmstic system ef industrial relations showed by the remarkable
response it generates from employers, unions and the state towards
collective bargaining; thus cooperation rather than confrontation becomes
the main feature of Jordan's current system of industrial relations. On
the other hand, emigrants remittances represent a major source of foreign
exchange and proved to be of adequate importance to Jordan.
It was also confirmed that wage structure in the Jordanian economy
is closely tied to educational attainment with regard to major specialisation.
With regard to wage development, it was found that while money
wages increased rapidly, real wages for various groups of manpower and
across various sectors of employment declined for new entrants to the
labour market throughout the period under review; whereas, real wages for
those on-the-job have generally improved. For both new entrants and
those on-the-job, private to public sector wage differential widened.
It was also shown that there was a tendency for narrowing wage differential
between the professionals vis-a-vis other groups of manpower. The
narrowing of differential proceeded faster for those on-the-job compared
to the new entrants to the labour market. It also proceeded faster in
the public sector compared to other sectors of employment. Finally,
hiring procedures, labour turnover and other conditions of employment are
also discussed. A consideration of these findings prompted thoughts of
various policy measures that are of adequate importance to Jordan at this
stage of development.