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.